Mens Junction

Everyone wants to get rich but everyone isnt! People who have outgrown their wealth even after starting from zero have inspired masses. And rightly so, because examples of such people are not rare.

What is that one common thing that rich have followed to be where they are? We will cover in the post later. But before that lets have a deep dive on what mistakes people generally make in order to build wealth but eventually remain where they are.

First problem is, everyone wants to get rich fast. They want quick money to achieve their milestones quicker and have enough money before their set retirement date to enjoy their rest of the lives in Bahamas or island at Maldives!

Such kind of desires and haste within make you do things which otherwise are not financially wise things to do. For example, people invest in derivatives, pongy schemes, fall into unwanted debts etc.

Derivatives, where people speculate on daily basis on the movement of stocks or indexes with a hope of earning quick bucks. Sad reality is that People eventually loose out their capital and sometimes their life savings. We have seen so many people around us doing that.

As per the National Stock Exchange of India, more than 90% of futures and derivates traders loose money. But we still see new traders entering with the same hope of quick money every year. The ones who have burnt their hands are either revising their strategy or have started to go to other means of quick money.

This greed of quick money also leaves lot of opportunity for scammers to enter in the scene. People fall in trap of multi fold returns in few weeks scheme and give away all of their life savings in these pongy schemes and get scammed.

People take debts to invest in quick money instruments and we have seen majority of them in greater guilt later on.

And then thanks to many youtubers and financial influencers who are encouraging masses to believe in reality of huge chunk of wealth in your bank accounts within weeks to get their bank accounts loaded with social media revenue.

What is the Secret Sauce?

The secret sauce is to understand that the real wealth is not created overnight. Wealth is created by financial discipline. A discipline to save and invest regularly.

If you are investing the savings regularly in quality stocks, Gold, mutual or index funds etc on a regular basis, you will make wealth. You will need to give time for it to grow. There is no alternative to time.

We must understand the power of compounding, the eigth wonder of the world. Let the compounding do its magic day in day out and you will eventually come out as winner after few years.

Regular investment will compound your money to multi-folds in few years. It may even get you a better retirement than Bahamas or Maldives, but patience and time is the key.

So from now on whenever you see your peer or colleague boasting about a new car, vacation, house etc. do not get that into you. You never know how it has been bought. It could be bought on debt, generational wealth or any other means which you dont have access to. As Morgan Housel says in his book Psychology of Money – “Wealth is what you dont see”

But remember if you are on a right track of financial discipline of save and invest, you will get a bigger reward at your time.

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