Investing is Boring
Think investing is all about excitement and glamour? Think again. Investing is dull and boring.
When talking about investing many people imagine the share market. They think instantly about traders screaming at one another across a crowded room. They imagine prices going up and down, making or losing thousands of pounds in a blink of an eye. Most remember the movies “Wall Street” with Michael Douglas and “Wolf of Wall Street” with Leonardo di Caprio. But, there is a big difference between being and investor and being a trader. Traders watch the markets constantly looking for the next trader. Yes, they can lose money in the blink of an eye.
Investors, on the other hand, have a plan to become wealthy. Their plan will include buying income producing assets which they hold for a long time before selling, if they do indeed sell. A large proportion of investors never sell instead passing their assets on to loved ones upon death.
The plan will be reliant upon the current markets, looking for the right investment opportunities. All investments have cycles where the investment is up or down. Investors will be patiently waiting for the right opportunity when they can buy low and sell high. Patience is the key. They can’t force markets to do what they want, instead they have to sit back and wait for the markets to come to them. I liken this to watching paint dry. It’s boring.
There are 4 key asset classes for investing. There are tens of thousands of different investments which filter into 4 key categories – business; property; paper and cash. Within each of those categories are sub-categories. For instance, if you look at property you can invest in residential property; commercial property; holiday lets; storage units; garages or land. Then there are more specialist areas such as within holiday lets you can let rooms; whole houses; villas; apartments; caravans; yurts etc. As you can see, each key category can be split down to find something to suit someone somewhere. Each of the investment categories take time to build. A business doesn’t grow overnight you have to build it step by step. It’s a fluke if you buy a share that takes your £100 to £1 million over night. You have to keep buying more shares and watch someone else build a business so your share value goes up.
When you become an investor, you must have your why. When I work with clients, I ask them to create their perfect day, then break it down into steps of easy to achieve goals. These goals will keep them focused on why they started investing. So, during the long boring period while waiting for the investment to work its magic they have the dream and the vision of their goal to help them stay focused and patient.
However, with the £2.73 Club, you can become a millionaire in 5 years. You can start building your dream lifestyle and the wealth you need to maintain it. While 5 years might seem a long time, it is a small time commitment. While your investments are boringly growing you can continue doing what you normally do just putting a few hours a month into growing your future dream lifestyle.
Investing is boring. You have to be patient to give the investments time to grow and generate the type of income you want. However, there is no better time to start your investment journey than now.
If you would like more information about the next Mastermind Group training starting in August please contact me on email@example.com so you too can discover just how boring investing is.