To find success, sometimes we have to dismiss common beliefs and do the opposite of what most people are doing.
There are so many common sayings we just take for granted as true, yet if you look at them more closely they make absolutely no sense.
For example: “You can’t have your cake and eat it, too.”
Well, what’s the point in having the cake if you can’t eat it?
Or how about this one: “Don’t look a gift horse in the mouth.”
If you think about it, isn’t that exactly what the Trojans should’ve done?
The point I’m trying to make here is that it you want to be a successful property investor or business person or entrepreneur you’re going to think differently to most how most other people think.
You’re going to have to do things differently to what most other people do.
As I’ve written in my book Rich habits, Poor Habits, you’ll need to adopt the Rich Habits of successful people and give up the poor Habits of most unsuccessful people
And it will require deprogramming from many common beliefs and assumptions we’ve come to take for granted as true.
Today I’d like to share 2 common beliefs you’ll have to let go of.
Common wisdom seems to suggest that you should diversify your investments.
But is this correct?
In my opinion it is wrong, in fact I remember reading Napoleon Hill’s great book Think and Grow Rich many years ago where he said that successful people specialise in one area - they don’t diversified.
On the other hand, you will find many financial planners telling you to diversify.
Why? Because if you put all your eggs in one basket and something happens—like dropping it—you’ll lose everything.
But, I have a solution for that; take good care of that basket!
Warren Buffet said it well ““Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing.”
Robert Kyosaki put it this way:
“Many financial advisors recommend that you diversify for your own protection. What they fail to tell you is that it is also for their protection. Since most financial advisors cannot tell you exactly which stock or mutual fund is a great investment, they tell you to buy a bunch of them.”
In my mind diversification leads to averageness – bottom of the best and cream of the bottom.
I’ve found that wealthy and successful people – be they a business person, entrepreneur or investor – have one in common: they specialise.
They all focus their concentration on one single earning activity.
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They eventually became exceptional in that one activity by continuously improving their skills and increasing their knowledge in that one activity.
Despite the myth going around that it is good to have multiple streams of income the wealthy very rarely engaged in multiple earning activities.
I remember one astute colleague telling me “If I try to do five things to earn money, I will lose money in all five things. So I focus on doing one thing really well.”
If you want to be rich, you’ve got to be great at something.
And to be great at something, you’ve got to focus on that something. And that’s where you put all of your eggs!
If you're like me, you're getting potential opportunities in your inbox every day.
Opportunities like alternative investments, the next hotspot or the secrets to success and untold wealth.
I remember recently a client saying to me “Michael—I’m constantly coming across great opportunities - How do I choose which one to follow?”
In my mind, opportunities can be obstacles if they take your focus away from what’s in front of you right now.
I've made more by saying no to perceived opportunities them by saying yes to them.
I know it's exciting to chase the next “shiny new toy” but to become successful at property investing or business, or in fact anything in life you have to do the same thing over and over again.
You only become an expert by doing one thing a hundred times, rather than one hundred things once.
How do you know when you're an expert?
When you can consistently get the same results in any market.
On the other hand, you lose time and focus when you entertain new ideas, research them and find out a bit more.
Next thing you know, you are go again scattering your focus and energy.
So chose one area you want to specialise in.
Maybe it's property investment, maybe it's renovations, maybe it’s your profession or business.
Remember, there will always be plenty of opportunities within this field.
Make sure you’re doing well with one thing, become an expert at it.
Get rich first, and then you can have the luxury of pursuing other opportunities.
So the bottom line is, if you want to become rich and successful – do the opposite of what most people do.