If you want to become a better investor, this week’s show is for you.
Today I’m going to chat with you about two important topics that will be relevant whether you’re a beginning investor or a seasoned pro.
Firstly, I’ll talk about the 7 habits of highly effective investors.
I’ll look at the 7 habits of highly effective people and explain how these approaches to success also relate to investing.
Then, I’ll go through an exercise of deciding what I would teach my 21-year-old self if I could go back in time with the knowledge I have now.
You may want to try the same exercises.
Chances are, the lessons you would teach are some of the same lessons you should focus on today.
7 Habits of Highly Effective Investors
- Be proactive. You can choose to take control or be controlled. You’re where you are because of all the things you’ve chosen to do and all the things you’ve chosen not to do.
- Begin with the end in mind. By focusing on your desired outcome, you’ll lead yourself toward those goals. Set long-term goals, make a written plan, and devise a strategy to get there.
- Put first things first. You need to learn how to prioritize actions. Take a step-by-step approach. Keep the big picture in mind, and don’t be afraid to say no when an opportunity doesn’t fit in with your plan.
- Think win-win. There is more to be gained from cooperation than competition. Learn how to be happy with what you have while you pursue what you want.
- First seek to understand, then be understood. Really listen when someone is speaking, instead of just formulating a reply. Avoid confirmation bias. Be skeptical of your preconceptions.
- Synergize. Creative cooperation allows us to uncover new solutions. Surround yourself with consultants and mentors that will lift you up, not drag you down.
- Sharpen the saw. Your greatest asset is yourself, so you need to look after your mind, body, and spirit, and maintain a healthy balance. Don’t be afraid to spend or invest money on your education and learn from your victories and mistakes and those of others.
21 Lessons I Would Teach My 21-Year-Old-Self
- Learn from your mistakes. Mistakes are inevitable. Learn from them and keep going.
- Love change. Change happens for a reason, so learn to be ok with it.
- Say “no” more often. You don’t have to say yes to everything someone asks you to do.
- Focus on becoming good at one thing. Successful people specialize.
- Tell people how you feel. Never underestimate the power of a good compliment. Don’t be afraid to be honest, and to apologize when necessary.
- Don’t worry so much. Most of what we worry about never happens.
- Be honest with yourself and with others. Honesty gives you peace of mind, and that’s priceless.
- Remain curious and keep learning. Ask lots of questions. Invest in yourself by investing in your education. Continued personal development is the key to success.
- Get good mentors early in life. Don’t be shy about doing this. We all need to learn from somebody. Why not learn from the best?
- Be grateful. No matter how much money you have, you won’t be wealthy unless you’re grateful and enjoy life.
- Love yourself. You can’t be fulfilled until you’re happy in your own skin.
- Don’t compare your Chapter 1 with someone else’s Chapter 20. Everyone has their own problems. Concentrate on being a better person today than you were yesterday.
- Help others become successful. When you find yourself in a position to help others, bring them up to where you are.
- Enjoy the journey. If you don’t enjoy the journey, you won’t enjoy the destination.
- Stop making excuses. Don’t be a victim or blame others.
- Take risks. Don’t be reckless, but don’t let your fears stop you from taking calculated risks.
- Choose your friends wisely. The people you surround yourself with will rub off on you. You’re more likely to be successful if your friends are like-minded and motivated.
- No one owes you anything. If you want something, work for it.
- Think long-term. You need to think 10, 20 ,30 years in advance. Great things take time.
- The 80-20 rule. The people who work the hardest aren’t necessarily the most successful. You can work little and be smart about it and get what you want.
- Make investing a priority. Invest time in learning how money works, how it’s made, and how it grows.
Some of our favourite quotes from the show:
“You’ve got to become the pilot of your life, not the passenger.” – Michael Yardney
“Learn how to be happy with what you have while you pursue what you want.” – Michael Yardney
“I’ve made more by saying “no” to things than by saying yes to all those perceived investment and business opportunities that have been put in front of me.” – Michael Yardney
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