Most people probably do want to become successful in life, but the journey is, famously, not an easy one. The growing wealth gap between the rich and the poor makes it seem impossible for most of us.
However, the fact is becoming wealthy is a matter of mindset, and building a mindset conducive to wealth is the first step to attaining it. This means you will need to get rid of some financial habits, which may be the bridge between success and failure.
Reuben Kimani, the Chief Executive Officer(CEO) of Username Investment, says some pieces of investment advice people get fed can be misleading and anyone endeavoring to become rich should avoid them.
Some of these misleading investment advice are:
Avoid debts at all costs
Borrowing is part of growth in investment; what matters is how you use that loan. Kimani says many investors have done great things with loans, and people should never shy away from borrowing to make great investments.
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”Most people have grown their wealth using debts. It depends on how you are going to use this debt. It must always give you a much bigger return than the interest you are paying for that debt.’’
”If you are starting a small business, it has to give you enough money to pay up the principal, the interest and still make some level of profits. Don’t make the mistake of starting a business without doing your own calculations to know how much you are going to make,’’ he said.
Follow Your Instincts
According to Kimani, investment follows data and fundamental factors hence the need for research. He notes that your instincts should guide you to the right information to avoid making mistakes.
Investing is for the Rich
Many people we call successful today started from the bottom; it’s their smart work that brought them to the top. Kimani says that anyone can make successful investments no matter their financial class.
”If you have Sh1,000, you can invest Sh200. Invest a percentage of your monthly income. To become wealthy is a matter of time,’’ he added.
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Save! Save! Save!
He says that you can only get rich through investing, not saving.
”You must always save with an objective in mind. Why are you saving that money? It has to be for investment purposes. You can save money and end up using it for things that were not planned.’’
You have too Little Income to Invest
”You save a percentage of your income, and you can do it regardless of your income. Find a mechanism. You can buy a share for as little as Sh100. So if you have Sh2000, you can buy a minimum of Sh100 for most counters and start investing there, and you will learn over time.’’
Trust Me With Your Investment
”People will tell you that a particular investment has zero risks. That’s a big lie. Every investment has a risk. You have to find the level of risk that you are carrying. Do your research and don’t depend on hearsay or chase something that will misguide you. Make the right decision about investment today, and you will see your investment grow.” he advised.
