A lot of years has passed since I first started this blog for the purpose of documenting my journey in investing and also sharing my experience with our Filipino people about mutual funds. Some people may have started earlier than me and some people might have been encouraged after reading some articles in this blog. I appreciate the fact that I have converted you into a savvy investor and made you think about the future, your future. It is your future after all and it will be a bright one. For those who have not yet started in investing, you are missing out on a lot. Bad times have come, and that is the 1st best time to invest. Stock prices and mutual funds are cheap and you can get a lot of profit and gains once the market picked up again. But a better strategy is to add more money into your mutual funds thru good times and bad times. Especially at bad times.

I have thought how far have I come in this mutual fund investing journey and took a peek at my investment account. To my delight, my mutual fund portfolio has been hatching a lot of eggs and are now producing more money without me working.

From my first ever year in earnings from Mutual fund of P15,000. I have come a long way. From a measly mutual fund with P15,000 in gains and 2 years after, that fund has earned P129,759.48 in profit.

Who says money can’t buy happiness? If money can’t buy happiness, why is there a smile in my face? This is money that I have never worked for. It is wealth that money made for me. Each penny that is in there is a testament to the ability of a person to be financially free with enough financial education, discipline and living within their means. And also a little bit of sacrifice.

The key is investing consistently and diligently. Invest in good times and bad times. Sacrifice a little bit for a brighter future. Think about your kids, think about your retirement, if you spend all the money you are earning now, be it big or small, would you be able to live comfortably when you retire? When you can’t work anymore? Look at your kids, would you be able to put them to a good university?

Look at what can happen in a span of 2 years of consistently investing your money every month. Then imagine how much you could gain 10, 20, 30 or even 40 years from now? It is possible you can live just by the returns of those investments. And people who started out young will be able to experience that earlier in their lives and will probably enjoy it more for longer time we have in this world.

Happy investing!

Goose #1: The Nickel Pooper Goose
Price: P3,000.00

The giant is selling his goose for P3,000. This goose poops out P50 pesos per year for as long as the goose stays healthy. And you can buy as many goose of this same type as you like. The only drawback is, they can only lay P50 egg every year.

Goose #2: The Home Run Goose
Price: P15.00

The second goose lays a golden bar. A golden bar is worth P50,000. But the drawback is, he can only lays an egg once a month for the chance of 0.001%. And whatever the outcome is, be it lays an egg or not, the goose will die. But you can buy as many goose as you like.

Which goose do you think is the real golden goose? The Nickel Pooper or the Home Run Goose?

This simple analogy is the same as saying mutual funds vs lottery. Mutual funds is like the Nickel Pooper Goose. It pays you small amounts every year, it costs a lot to invest, but it will pay you for life. The Home Run goose is the lottery. The chance of losing your money is almost certain in every goose you buy. Though the returns may blind you because of the small investment, the prize is huge, but the chance of actually realizing that reward is close to none.

This is where people tend to misinterpret investing, risk and returns. People will say that lottery only costs a little bit for that much return. But if these small pennies are kept and bought the more stable Nickle Pooper, they are more secure thru their retirement than chasing a home run in lottery.

Many people will also be tempted to investment scams because they are offered ridiculous returns on their investments. There are no such thing as get rich quick. The fastest way to getting rich is to get rich slowly. People who claims to make you rich quick is only after one thing, your money. Be smart. Go for the slow, sure returns rather fast and furious.

Go for mutual funds that offer consistent, stable returns that compounds its interest. Buy more Nickel Pooper Goose every month and you’ll be amazed at how many of these small pooping goose will add up! The trick in investing is to invest consistently, only thru that strategy, you’ll be able to use the power of compound interest. If you want to retire early, for your family, for the kids’ college funds or that beach house you dreamed about, this is the only sure way to riches. Get rich slowly. Happy Investing!

I write this post to let everybody know that, this path that you have chosen… To be financially free, to be well off, or to be “self made” millionaires is a lonely path. Not many people decide to take the journey. Well, most of them would like to, but never will take the first step. That’s why a lot of people only “wish” to have a business but will never leave their 9 hour job. The thought of leaving their job is paralyzing for the average person. That is why, you might find yourself alone or if you are happily married, good for you.

Sacrifices, there’s no other way to be financially free. Not unless mama at papa are wealthy, you only need to know how to manage the business. But for all of us who were never born with a silver spoon, we go scrambling in the dark looking for signs and a way to make our risk count.

What are these sacrifices? And why did you say that this journey is lonely?

Sacrifice #1 – Social Sacrifice

I started investing after I graduated… That is, after I quit my day job. I was working while taking my engineering degree. And once I graduated, I quit my 9 hour day job to run a business of my own. And during those times, depression starts to kick in.

Friends and family will never understand, why would you deprive yourself of having a good time, not having to drink with your buddies, go bar hopping, go on a vacation or travel. It is a lonely feeling to sacrifice all these “happy experiences” for a better, more long term future “better experiences”. But don’t be sad my friend, all these sacrifices will return the favor, what difference does it make if you plan to eat later than everyone else? You get to feel hungry, that’s all. But isn’t it a good and better feeling if you eat after being so hungry for a long time? Just like Steve Jobs always said “Stay hungry, stay foolish.”

What I mean is, what’s the difference if you plan to travel in your 40′s than in your 20′s? The great wall of China will still be there probably a lot longer than you. There should be no rush to experience all the best things in life. What you want to do first is build your nest. Your investments. Your passive assets. And money is very honest. It does not care if the person holding it, is good or bad, is politician or a lottery winner, an ugly person or good looking model. It only needs to know if you know how to handle it and it will reward you with great riches using the power of compound interest.

This also includes, turning down friends. And they will brand you as KJ or antisocial. I have been branded as one. And there is nothing wrong about that. As you grow older, you will realize who are the friends that you should keep and who are the friends that only knows how to party. Can you really consider a friend just because you spent more time in the bar together than everyone else? I guess not…

Sacrifice #2 – Mental Discipline

Investments, especially in mutual funds, needs a lot of time before you can earn the profits. Most of these investments are for the long term, that is, money for retirement. Having the mental discipline to “hang on” is very hard if you can see that your money is losing because the price of a stock is declining, or there is a market recession, financial crisis or war.

Having the discipline to stay calm is a must. Not just in business, but also in investing. What can you do to alter your “panic” emotion? Think about this, can you control financial recession? Can you control war? Can you control a country’s impending default? I guess not. So why worry about it? What you should focus on is to make more money so you can take advantage of the recession. During those bad times, stocks and market prices goes down, and its the perfect time to buy more investments!

Sacrifice #3 – No Flashy Stuff, Cars, Clothes or Gadgets

How many times did I list these stuff as a no no in investing. If you don’t need a car, you don’t buy a car. Just because your childhood friend is getting a car doesn’t mean he is getting ahead in life. Cars mean nothing. Don’t let material things define you. Socrates said that needing something is only human, but a man who does not need anything is divine. Material things gives a false sense of getting ahead in life. Its a loud loud way to saying to other people that you’re getting rich. But think about it, the pride and ego of letting your neighbors know that you’re rich, is it worth it for the price of a car or a large house? Its only pride.

And a costly one. P1M to P2M spent on a house could be better put in an investment such as a dividend paying stock or mutual fund… You can easily earn P8,000 per month with that passively and that’s only 5% the return, the good thing is, its for life and compounds the longer you stay in that investment. You are building a nest that could feed you, to be free, using the money that is well spent.

Or instead of buying your dream house, why not make it into an apartment? Passive income from the rent can feed you. All these glamorous, big houses, can be bought later, if you really want to.

The only drawback that you’ll experience in this sacrifice is that people will judge you by the way you look.

The Benefits

The benefits of all this is your freedom. You’ll be able to retire early and send your kids to college even before you start having a family. If you’re young and aware of this fact, the better, as compound interest is on your side. Let the party goers party all night, let them travel abroad while you sit in your couch and read investing books. Let them experience the best things in life early, let them burn their youth and health to unnecessary things instead of building a better future. Delayed gratification will be much sweeter once you have your nests built and ready.

As you walk the path to financial freedom, you’ll lose some of your friends. But the ones that are real will remain. You’ll meet new friends that think the same as you but are richer than you and more successful than you. There is no better, humbling and more satisfying feeling than be with people who have been in the same path as you, walked the same path as you and sacrificed all the things that you did and have all the stories to tell. You know that the destination is reachable, the path is only hard.

So if you’re in this same path in life. Hang in there. The sacrifices will bear its fruit, you don’t have to rush things, all you need to do is keep on walking. Add funds to your mutual funds, to your investments, keep reading, attending investing seminars, educate yourself, deprive yourself of luxury and unnecessary things and most importantly, stay humble.

Money should not change your character, only a way to keep score.

Happy New year everyone. Happy investing.

• Top 10 Reasons Why People Fail to Become Millionaires
• Books That Will Teach You How To Invest and Personal Finance
• 5 Steps to be Financially Free
• How To Invest in Mutual Funds
• 4 Guidelines in Selecting Your Mutual Fund Company
• List of Mutual Funds in the Philippines
• How To Prepare Yourself Before Investing in Mutual Funds
• Why People Don’t Invest in Mutual Funds?
• Power of Compound Interest – Your First Million is the Hardest
• Mutual Fund Investment Suggestions During Financial Crisis
• Why Mutual Funds are Better. Mutual Funds vs Savings Account

Remember that about 90% of millionaires in the world are self made. Meaning, they got their wealth by their own hard work and not inherited from their parents. Which means, it is possible to become a millionaire if you know how to invest. Mutual funds are the first door in investing. It is simple, effective and low risk. It makes your money grow, without having to learn too much or having an MBA degree.

Just remember to save extra money every month and put it in mutual funds. That way, you won’t be in the same situation most of our fellow “officemates” get into when they got laid off from work. Remember that in investing, time and not timing is most important. The sooner you start investing, the more money you can earn and the earlier you can retire. Make compound interest work for you by working hard to get your first million, then let things grow by themselves (the cash).

If you have any questions, just leave your comments below. Happy Investing everyone. Merry Christmas and a Happy New year. (I know its still early but what the hell. I might forgot to post again.)

Consider this table:

To go from P0 to P1 million:

From P1 million to P2 million:

From P2 million to P3 million:

P1,291.66 invested in a mutual fund that gives an annual return of at least 11% will make you P1 million pesos in more or less 20 years. (Mutual funds on average, gives at least 13% annual return). But consider that you still continue to invest P1,291.66 every month to your mutual fund, you make your next million in only 5 years! That 1 / 4 of the time it take your first million. And to go on further, say you still contributed P1,291.66 every month to your mutual fund, you make your next million (P3m) in 3 to 4 years.

But the P1,291.66 per month contribution is not there just for the sake of illustration. Millionaires think differently, P1,291.66 is not that hard to save. But if you still can’t, a millionaire does not think that way. He thinks “How can I make extra P1,291.66 so I can invest?”. Consider this, if he works harder enough, he might be able to save more than that amount, if you double your contributions every month, you can reach your first million faster. And once you built that first P1 million it all goes to the saying, the rich get richer. Because you have the most powerful force in the universe working for you, compound interest.

Given that mental attitude and a new frame of mind, how many years do you think it will take for you to make your P100 million? Its not that impossible now, isn’t it?

Happy investing.

Pray? Save your money in a piggy bank? Bury your money elsewhere? Not this time… This is the time to get proactive… This is the time for educated Filipinos to make profit… This is the time to INVEST. Remember the phrase “Be greedy when others are scared… Be scared when others are greedy” – Warren Buffet. This is the time where a lot of people are afraid. And we must take advantage of that and get greedy investing.

So what are the possible or good investments to buy during this time?

DISCLAIMER: THESE ARE FOR EDUCATIONAL PURPOSES ONLY. INVESTING HAVE RISKS AND NEVER USE MONEY THAT YOU CAN NOT AFFORD TO LOSE. WE ARE NOT HELD LIABLE FOR ANY LOSS THAT YOU MAY GET.

Investment Suggestion # 1: Mutual Funds & Index

As I am a fan of mutual funds for newbie investors. I would buy mutual funds that track the stock index. (As I already have done so myself). Remember, mutual funds which tracks the stock index… Be it international or Philippine stock index.

Investment Suggestion # 2: Blue Chip Companies

Buy bluechip companies. Though it may be a little pricey (still pricey even on down economy), buy stocks of companies that are already successful… In layman’s term, companies that are already an “institution”, that has been around for quite some time. More often than not, these companies may not be that badly affected by the down market and will recover after a few months.

Investment Suggestion # 3: Save US Dollar Currency

It’s time to go to your nearest money changer and buy a lot of dollars. Keep those dollars with you and wait for the dollar to get strong again. There will be a risk here, should the dollar never to bounce back again. But then again, in investing, there are risks.

Investing Suggestion # 4: Buy Gold

If you really want a stable and strong investment. Buy gold.

If you want to spend it on luxurious cars, houses, clothing and travel (and chicks) this 1 million pesos is not that big of a deal to spend. Proof of the matter are those who won big on tv game shows and lotto and are back to poverty after a year or two. Money does not solve anything… For the long term at least.

If you’re an intelligent person and young, you might have thought that “great power comes great responsibility” and the power we are talking about here is “purchasing power”. And let’s say that we are all intelligent and well educated people here and just limit our options to things that are only important… Investing…

Since I do not know who you are, I’ll be sharing my thoughts on this and I want to know what are your thoughts as well.

Learn to Keep Quiet

If I Have 1 Million Pesos – the first thing that I’ll do is to never let anyone know that I have 1 million pesos. I can be hard keeping quiet knowing that you have a large sum sitting around and excited to spend and share it. But you want to avoid unnecessary expenses “balato” or “Pa-party”. Those things are only what poor people will do. For me, being rich means being rich in mind. And to think that 1 million pesos is just as small, like any other plant. And it needs care so it can grow. We can go paparty and make balato later.

Also, having money with that sum attracts a whole lot of other people that are not really important in your life. People that wants to borrow money, gold diggers and long lost relatives that wants to have a piece of the action. You don’t want these kind of people in your life do you?

Investing

I’ll assess myself. If I know how to invest in stocks. I will invest 80% of my money (P800,000) to stocks. If not. I will find a mutual fund that fits the criteria. There are a lot of mutual funds out there where managers will invest in purely stocks that will give you high returns that equals stock performance.

Keep in mind though that investing in mutual funds will have some management fees and this vary from company to company. The advantage of knowing how to invest in stocks is that you don’t have to pay for your fees because the manager is you.

Diversify

10% of the remaining money will be put on Bonds. Bonds are investment vehicles that are sure to appreciate in value. They are much like time deposits on banks. They are secure but slow. Why do we need to invest in bonds if they are slow? To reduce your risk a.k.a. diversify. What will happen to you if your stock investments tanked? What happen if the market is down? You’ll lose money… So you want to make sure, even on down markets, your money will appreciate in value.

Emergency Fund

Wait a minute, that’s only 90%… What will you do with the remaining 10%? You might ask…

The remaining 10% will be your emergency fund. If suddenly, you lost your job or need money for accidents, you will have some money to use. You will need to place your emergency fund on accounts that are easy to access like checking accounts, atm accounts or money market funds.

You might have wondered, where is the happy ending in this? Haven’t we all seen on TV, that lotto winners and tv game show winners living the good life after winning millions of pesos? Well, the truth is, there is no happy ending. It’s all but a dream a lot of Filipinos chase and they will never ever get it.

We live each moment of the day. We might be rich now, poor tomorrow. Or poor now and rich tomorrow. Nobody can tell, but for us who wants to have a satisfying life without having to worry about money (financial freedom), know this, the most important thing with regards to money is where you put it. Do you put it in assets or investments? Or liabilities and status symbols?

Mutual Funds Philippines Answers Your Questions!

Carlo Mabugay wrote:
Good day MFP,

I’m a regular employee and now have a decent savings which I plan to venture on
investments and stuff. Could you recommend a low risk investment term and a
highly reputable investment firm? I appreciate this wonderful. Thanks and God
bless!

Hello Carlo. Its a good thing that you are venturing into investing. For someone who wants low risk, I would recommend mutual funds that offer bonds. They are very low risk but has a steady increase in value. Of course, don’t expect to be rich in this kind of investment because its low risk, it also yields less return. But it gives almost no fluctuation on your investment and steady increase…

Now for the company, I’m not so sure. There are a lot out there. And also depends on how much money you are willing to invest. Some of the companies have minimum investment required. For example, BPI has P50,000 minimum. So pick the company that suits your budget.

I’m not talking about winning lotteries or winning game shows. Most of the time, these instant millionaires find themselves in poverty after a year or two. But that’s a different topic overall. What I want to discuss to you is that, being a millionaire or financially free doesn’t require one to stress yourself or leave your loved ones just so you can get the money you so dream of.

I’m talking about the steps on how to achieve financial freedom. The freedom of not having to work anymore and do the things you really want to do in life. Let’s start.

Step # 1 – Pay your debts

Freedom starts by paying of debts. Credit card bills, mortgages, car loans are some of these debts that might have piled up, that hinders you to become free. Focus on clearing / paying them first before moving to step 2. The more debt you have, the longer it will take you to be free, and in investing, time is the most crucial asset.

Step # 2 – Build Up Your Emergency Fund

Emergency fund is your money stored (some place safe) where you can have instant access if ever you need money for emergency ie, you lost your job. How much money the emergency fund will be depends on how much expenses you have each month. It is imperative that your emergency fund contains at least 8 months worth of your expenses. So if you spend P20,000 per month on expenses, multiply that by 8 and you should have P160,000 money in your emergency fund.

Where to place your emergency funds? ATM savings, checking accounts or money market funds. As long as it is liquid and you can get the money any time. After you built up your emergency fund, go to step # 3.

Step # 3 – Investing in Safe Investments

Once you have an emergency fund in place. You are now free to take risks. But you must not take great risk first. What you want to do is invest in safe investments first. Investments that has little risk and stable returns. Investments that beats inflation and gives you more space for the money to grow. It will also serve as your first education to the world of investing.

If you are still working and you are on this step, then good. Put all your savings / extra money on investments such as, Mutual Funds, UITFs and Bonds. Those are very safe investments. They may fluctuate every once in a while but don’t worry, in the long run, you will win and it will harden your nerves so you are prepared for a more ridiculous fluctuations when you take riskier investments.

How much money you want to put in safe investments is up to you. As you manage to get to this point, remember to live a frugal life. Every money spent on wrong things will only slow you down.

If you feel comfortable in investing, and thought that you have gathered enough courage and knowledge in investing then proceed to step # 4.

Step # 4 -Wealth Building, Let Money Work

There are only a few steps to get to here. But it may take you a couple of years to get here for others, a lifetime. This is the time where you are now free. Your investments and emergency funds will take care of you. This is the time where you will focus on building wealth and it is where the fun starts. It is what Robert Kiyosaki’s Rich Dad Poor Dad talked about, the fast track.

You will now invest in a more balanced asset classes. A mix of risky and safe investments. 50% aggressive – 50% conservative (step #3). You may want to invest in balanced funds for this. As you work or earn more money, continue to increase your funds here. Once you have a suitable fund and handsome profits, you are now ready for Step # 5.

Step # 5 -Money For Fun, Money Begets More Money

You already have an emergency fund. You have a safety net, safe investments, and you also have a balanced fund for long term steady gains. This is where you will earn the money you always dreamed of. Or perhaps do it for fun. The riskiest investments of all, stocks, currencies, forex trading / investing, commodities and futures. This is where the money is at, the most liquid and volatile markets where infinite sums of wealth are made and exchanged. Before you go further make sure you have read, studied and research what ever kind of vehicles you wanted to pursue after this. The kind of investments from here on now, will have the power to make you a hundred times richer but will also have the ability to wipe you out (broke/ bankruptcy).

If you think you have the knowledge and the skills to play this game, then you may. But be wary of the risks involved. Many people have made immense amount of richest and many people returned to poverty. If you are not confident enough, you don’t have to. Step # 4 should be good for most of us. You do not need to earn more money since the goal of this post is to be financially free.

Whatever step you may be in right now. Never forget that money has no real value. Its just a piece of paper with a dead person’s picture in it. What is important is your knowledge, and skill to make or attract money. Continue to learn and read. That’s the only way to beat poverty and fulfill your dreams.

This vision lead me to search for the knowledge that can fulfill my dreams. Like a young wizard searching for the scroll and wisdom of the sages. Needless to say, it was a long search. As most people who did this have died, already old or not from this country. I found solace through books. And their works, philosophy and strategy for wealth building. And now, I share these top 5 investing books that will change your lives as it changed mine

#1 – Think and Grow Rich by Napoleon Hill

Being a millionaire is all about mindset. And this book will tell you how to use your mind to amass wealth. The classic book about how to develop a mindset of millionaires. The forefather of all self development books. If you think Bo Sanchez’s book is good. Wait till you read this. It will make Bo Sanchez’ book written by a Christian Kindergarten Teacher for dummies. And its not even that expensive. If you have P300 to spare. BUY THIS BOOK. It will pay itself millions of times. You will find any other self development seminars and books redundant once you read this book. (They all just rehash information found in this book, in my humble opinion).

#2 – Richest Man In Babylon

From mindset, we go to the basics. Personal finance. This book is the written exploit of the richest man in Babylon. From his humble beginnings to being the richest man in the richest city during the ancient times. Learn from his rules and live by it. His rules are still effective until now.

#3 – Rich Dad Poor Dad by Robert Kiyosaki

A little controversial book. But it doesn’t stop us from learning the difference between the rich and the poor. And the realization that most of us live in a rat race, until someone or something knocks us out and we started to do something for our lives. In this book, will teach you financial freedom and the idea of passive income and cashflow from investments and assets that brings steady money every month. What is the difference between the rich and the poor? Its financial education in which this book will teach you.

#4 – The Intelligent Investor: The Definitive Book on Value Investing by Ben Graham

If you realize you need to invest in stock for the long term, read this book. This book is written by Warren Buffet’s mentor, Ben Graham. The father of value investing. And all of his students, including Warren Buffet became billionaires. Definitely a must have for any investor.

#5 – Wealth Within Your Reach by Francisco Colayco

This book is a little different. This one is written by a Filipino, Francisco Colayco. And this book is all about Mutual Funds! If there is one book that I could point you to, to learn mutual funds, it is this book.

I remember reading all these book at least 5 times because they changed how I view things with regards to money. I want you to read and apply all the things you learn in these books. And remember the reason why you want to be financially free. There are a lot of books that will cover any specific investment vehicles you might want to invest in in the future. What you want to develop right now are the basics and build your fundamental money management and investing skills.

If you have read any books better than these above. Please leave in the comments, I would love to read about it as well.

#10 – They Blame Others for Their Misfortune

People who always blame others for their misfortune are the ones that will never experience how good it is to have a good life.  Not unless they realize that blaming the government will never make them rich and tries hard to change their lives. Most people don’t want to take responsibility, a kind of immaturity that most of us never grow old of. But once you realize that you are in control of your destiny, blaming others (government, recession or anything) is just like a child having tantrums for mommy didn’t buy you the happy meal you always wanted.

If you want to be a millionaire be in command of your surroundings. Be in command of your life. Blaming someone or something for your failure only means you admit the fact that you are not in control.

#9 – Afraid of Hard Work

We want easy money. Just like on TVs. Overnight success stories. Going abroad and being a millionaire after 2 or 3 years. This are all the easy way out of the rat race. And unfortunately, its all myths and lies. Sugar coated by people afraid to be criticized of not having to show something that came from hard work and labor.

Folks, there is no easy money. Overnight success stories are 10 years in the making. 90% of businesses fail just on their first year. If you want to be a millionaire, you must be prepared to work hard. Trade sweat and blood for your dream and never stop of reaching for that dream.

#8 – Instant Gratification

How many people do you know that celebrate and party during pay day? How many people do you know take a vacation out of the country after being stressed out of work? How many people do you know personally, that will spend a lot of money for social gatherings or “bon voyage” parties for people that will go “work abroad”?

Many people tend to gratify themselves, rewarding them of a job well done. Only to realize that they spent all the money they “job well done” for. If you want to be a millionaire, live a frugal life. Live below your means. Don’t spend money you can not afford to lose. Delay the gratification and remember your goal. It is not to please your friends with a party. But to be a millionaire and stop working for good.

#7 – They Value Status Symbols More than Knowledge

People who buy things just for being better than the Joneses are bound to live a life in poverty in the long run. They tend to give importance how people will perceive them than buying books  or education that would actually  help them earn more. People who buys cars, the latest phone and the latest fashion every month are tend to live in a cycle where your money will never grow and will soon run out.

If you want to be a millionaire, spend money on seminars, on investing books and knowledge that will help you improve your skills and thus earn more money. Knowledge that may even give you a chance to be promoted and earn more money.

#6 – Never Try to Do Business

Everybody wants to have a business. EVERYBODY. But only a few will actually start doing it. You will never ever be a millionaire in a 9 hour day job. No matter how hard you believe, no matter how much you pray. You will never be rich working in an office. Unless you own the office.

#5 – Afraid to Take Risks

Millionaires and businessmen are risk takers. And its better to take risks while young so you have a lot of time to learn. School taught us that its not good to make mistakes. If you make mistakes in an exam, you will fail. In real life, its the other way around. You must fail first before you learn something.

People who don’t take risks are living in their comfort zone. We humans are hard wired to keep on living and progressing. Its in our blood. When you stagnate by not taking risks, you will soon realize that you will regret not doing so when you are old. Take risks and follow your dreams. There’s no other way to live life.

#4 – They Pick The Wrong Friends

Research studies shows that your income is proportional to the average income of your close friends. Meaning, you and your friends have the same amount of income one way or the other. If you are friends with an average wage earner, chances are, you have the same income.

Pick your friends carefully. And I’m not saying this to look only on their net value. Finding a rich person to befriend is only the tip of the iceberg. What made them rich is their attitude towards money and life that you want to imitate. If you hang out with them, soon enough you’ll pick up their skills in personal finance and investing. Equipping you with the right skills and mindset to become a millionaire.

#3 – Easily Swayed By Others Opinion

I see young people go to college to take a degree because their mom, dad, friends or friends’ mother told them that you’ll earn big amount of money doing this and that. Being a millionaire means being wise. And a wiseman keeps his own counsel. A millionaire thinks and acts for himself. A millionaire is never easily swayed by the opinions of others.

#2 – Never Learn to Invest

A lot of people buy cars and houses, the first time they reach a suitable amount of income. They think that the things they buy are assets. But in fact, they are liabilities. Houses for example are liabilities. They don’t earn money. So its not an asset. They will never learn about stocks, mutual funds or spot market and so, they will never learn to be totally independent without having to work for money.

They fail to invest in themselves through knowledge. Fail to invest in their health and education. And so, all the money they earn will be wasted on sickness that should’ve been avoided.

#1 – They Work For Money

Millionaires don’t work for money. Money work for them. If you have a day job and you stay in that job just because you have to then you are in this category. Millionaires love their jobs. And they started out without a penny. They never worked for money and is never motivated by it. They are driven by their ambition and passion. Whatever that goal or ambition may be. Bill Gates’ Microsoft went bankrupt the first 2 years in business. He pushed on because he loves his job.

Mr. Warren Buffet worked for free just so he can learn to invest because he loves investing. Look at them now. These men were not motivated by money, yet they are the richest men of our time.

Next time you go to work. Think and ask yourself… Is this the work you’ll be willing to do for the rest of your life? If the answer is no. Maybe, you should start living for yourself and your dreams from now on.

Good luck! Please share this post to your friends and families if you also want them to be a millionaire.