The Psychology of wealth
At the Tony Robbins’ Wealth Mastery exclusive sharing, we’ve learned a couple of things from the team:
Did you know? 80% of success of wealth growth is psychology, while only 20% is mechanics?
We might think that making money and growing your wealth is a monumental task, but the truth is that most of the mistakes and challenges we face in our lives (or at least 80%) are actually from our mind.
We can get affected by recessions and losing our jobs. It’s the fear of uncertainty that grips us. So how do we start changing our mindset? That’s why it’s extremely important to broaden our view and perspectives.
Tony spoke with some of the world’s most successful investors and amongst all the mistakes, here are the 6 biggest and most common mistakes that people make while managing their money.
Mistake 1: Seeking Confirmation of Your Beliefs
Confirmation bias is a dangerous predisposition. Let’s say you love a particular stock or fund that’s performed exceptionally well in your portfolio over the last year. Your brain is wired to seek out and believe information that validates you owning it.
But just because it did well last year doesn’t always mean that it will this year. Foregoing due diligence due to your bias is definitely a dangerous mistake that you should avoid.
Tony Robbins mentions to always seek out advice or experience from others who can give you perspective to your beliefs.
Mistake 2: Following the Trend
One of the most common—and dangerous—mistakes is the belief that the current trend will continue. E-commerce may be doing well now, but how long will it last? The product that you’re offering is flying off the shelves, but just as people will flock to the next big thing, so too will your “big thing” gradually die out.
The Solution: Keep current. Always do the research and homework to maintain your income systems and keep them from becoming obsolete.
Mistake 3: Overconfidence
Let’s get real: overestimating our abilities and our knowledge is a recipe for DISASTER!
Everyone consistently overestimates their abilities, knowledge, and future prospects. That’s not believing in yourself, but overconfidence. Sometimes this overconfidence is fed by Mistake Number 1: confirmation bias.
If you start thinking that “everything will be fine” while not putting in the work; if you fall into the trap of surrounding yourself with yes-men, you’ll keep repeating your mistakes or worse—ruin all your efforts.
The Solution: Get real, be honest. Put down your ego, and learn from the experience. Acknowledge your limitations and face your weaknesses.
Mistake 4: Greed, Gambling, and the Quest for Home Runs
The quest to making it “big” quickly like winning the lottery, or at the casino. It’s all in built in us, to be greedy. But the true way to building your wealth, it’s all about taking small risk management.
We initially didn’t understand why shouldn’t we invest more into getting better returns, but the concept was simple. It’s about playing the “money game” safe. Based on the amount you were able to invest, you always take only a portion to invest. Greed can get the better of us and eventually become our downfall. Why invest more and take on more risk than we need to?
Our minds are wired to try and “win” at everything, but the reality of things is, even the best investors in the world will lose at times, how would it ever be possible for us to win all the time? Being a master of your wealth is all about the long run, being in the marathon, it is never a sprint.
Mistake 5: Staying Safe—It’s a Big World out There
As one of the trainers mentioned: “Stop being too safe!” We all like to stay within our comfort zone, where it’s “safe” and stable. By staying safe, you limit your ability to grow your wealth. Many people want to be financially free, and yet they work for others.
When the reality is, to be financially free and not work again, you must be willing to take chances to grow your wealth in a compounding manner.
Did you know? The average millionaire has 7 different sources of income. Diversify your wealth, let it compound slowly over time, it will inevitably grow. Keeping everything safe in one place, isn’t safe at all.
Mistake 6: Negativity and Loss Aversion
The biggest emotions we all feel: Fear. The fear of losing. No one wants to lose. The trouble is, as individuals if we lose money it causes us to be skeptical and instinctively shun away from new opportunities. The fear of loss is paralyzing and it can and will affect your psychology.
How do you tackle your fear? At Wealth Mastery, they taught us HOW to conquer fear of loss, and we soon realized that the only obstacle between us and financial freedom, is the mind.
Join us for the Wealth Mastery Programme – happening on the 11-14th October 2018 and achieve the financial breakthrough you’ve been seeking.
And the good news is, you can now redeem this programme with your Success Life tokens.
What will you be learning?
- Acquire the knowledge and tools to create multiple streams of income
- Make profitable and effective investment decisions
- Develop and maintain a positive wealth psychology
- Protect your assets and income streams in whatever economic climate
- Build your balanced investment portfolio
- Valuable access to reliable and proven sources of financial advice
- Discover the tried-and-tested methods to research, plan and track your profits
- Wealth creation strategies used by the top 40-50 richest people in the world.
- A personal financial plan that is tailored to you.
- The latest tools and technology to create your money machine.
We’ve been selected by Forbes as the most innovative company in the world for four consecutive years. Our revenues are now over $5 billion annually. Without access to Tony and his teachings, Salesforce.com wouldn’t exist today.
- MARC BENIOFF Founder, Chairman and CEO of Salesforce.com
Before TONY ROBBINS’ WEALTH MASTERY, I barely knew the difference between a stock and a bond. I was afraid the program would be too complex, but it turned out to be clear and more fun than I ever imagined! It feels great to get results!
- MARY THROWER Integrity Mortgage
WEALTH MASTERY gave me the confidence, skill set and belief that I could do it. This program accelerated my move from novice status to being a proactive, educated investor and experiencing financial success.
- GABRIELLE MOLNAR Director, Markham Appointments
P.S: Here’s the deal. As a Success Life investor, you have the privilege of redeeming for the tickets (worth $2950 each) at only SXL2000! That’s a huge discount off what others are paying but hurry before we’re full house!
For more information on how to utilise your tokens, watch this