Part 7 of 9 - Mindset Hacks to build online wealth & keep it

45.

Buy stock, not product. If you love the product, chances are others will to. So why waste time buying the product when you can make money off the stock. This creates a) passive income and b) a higher chance of return on investments.

Take Apple. Apple’s stock has risen over 12 times in the past five years, quadrupling dividends for investors. How many iPhones or iPods have you bought over the past five years? How much money do you think an average shareholder has made from the products you have been buying? Even with the death of its founder, Steve Jobs, Apple’s stock remained strong and rose. Traditionally company stock falls with the death of visible CEOs or front men, but this was not true in this case.

One exception: keep in mind that sales do not make the stock. Activision is a company that markets and makes one of the biggest selling video games in the world, with sales totaling over 400,000 on the first day of the new instalment release. However, their stock and shares have remained static for around 4 years.

46.

Create assets that will make money for you with a minimum of effort. For example, investing in a restaurant does not require you to show up daily to manage the day-to-day running of the business, only to pay the management firm or keep the standard of a franchise.

47.

Think long term. The truly wealthy do not count on single projects that net huge pay cheques, but invest in opportunities that create returns and dividends that last for years. Long term also means the ability of securities to mature. Thinking long term means having the ability to see the future in a sense—and finding projects that affect and create these futures.

48

Do not wait for business opportunities, create them. Entrepreneurs look at an empty lot and see possibility and a method for them to get rich. Those with a poor mindset simply see an empty lot. The rich look at garbage and see a garbage hauling business, a rust-cleaning service, a recycling centre. Those with a poor mindset see only the discarded tires, the dirt and the weeds.

49.

Another great secret is to never care where you money comes from. Many people balk at investing in businesses that are not “sexy” perhaps because they do not want to tell people at parties that they got rich off sewage.

Truly wealthy people spread their money around and reap them in regardless if they were earned because of sewage or flowers. Who cares if it comes up in cocktail conversation?

50.

Always think in terms of specific assets versus their overall value in the market. The truly wealthy do not rely on the ups and downs of the market, but the possible opportunities that stem from them.

For example, the real estate market may be down during the recession but right now savvy investors are buying up foreclosed property in great locations for half prices for later investment.

51.

Know when to hold off, reassess and quit. Investors will say no. But not all of them will. Those with a poor mindset go to the bank for a loan, get rejected and never think about their idea or opportunity again. The wealthy mindset goes to the bank for a loan, gets rejected, redrafts the proposal and returns to get the approval.

The poor mindset goes into business not knowing the risks of the deal and is baffled when the fallout occurs. The wealthy mindset goes into a deal, knows the risk and gets out if things are going bad. Always follow your gut and do your research. Know when to back off from risky or unethical deals will not only take your money but have effects of your freedom.

52.

Accept that there will be instances where you will experience some loss, such as when stock goes down or remains stagnant, therefore not providing you with the expected dividends. Accept that this will change as well.

53.

Do not join the bandwagon: just because everyone is putting their money in it, does not mean you should. Get rich quick schemes are simply schemes.

54.

Forget compartmentalizing your money. Every penny is important so do not think of it as a bonus or extra pay. The wealthy put every single cent to good use and are able to account for all of them.

The lesson here is to value every single dollar you earn. One millionaire started by investing $25, that is right, $25 in a mutual fund. He could not afford any more at the time, since he worked a menial job. As his pool grew, so did the amount of his investments. He is now worth multi-millions.

55.

Learn about taxes and how to use them to your advantage, not the other way around.