Creating a mindset for investment opportunities isn’t difficult. You don’t begin thinking about money, you think about the opportunities that money affords you.
However, to make the most out of the investment opportunities available to you, you’ll need to start thinking and behaving differently from what you are currently doing.
Think of the steps required, begin searching for opportunities and learn to recognise the investor behaviours within yourself that are holding you back.
Changing your mindset
Investing your money does not begin or end with money itself. Money may be your end goal, but the journey to riches requires you to think about wealth creation itself.
Think about how you would use your money to create income streams to generate more wealth.
Instead of keeping your money in the bank, and watching its purchasing power diminish as inflation rises, why not invest it in the stock market, property or even, your own personal development?
That way, your money will be able to generate an income stream for you, instead of sitting idle. After all, you want your money to work for you, not the other way around.
Fear of taking the first step
There is a subset of would-be investors out there who are terrified of the very notion of investing in the stock market or investments in general.
The reasons are plentiful and range the gamut from a lack of funds to having previously lost in the stock market before.
Honestly, none of them really matter. The fact remains, they’ve not actually invested anything.
There is a cliché that states; the best time to plant a tree was 20 years ago. The second best time is today.
The reality is simple if one does not take the plunge, start an investment portfolio, then they’re never going to achieve financial freedom, let alone even the basest financial goals.
Being overly risk-averse
It’s also possible to be so risk averse that one does more financial harm upon themselves than not investing at all.
Panic selling during a volatile period does one no good. If one sells because they’re afraid of the current market performance, or followed the crowd selling their investments, the risk of selling low and locking in the losses is not only a possibility but almost a certainty.
Change the mindset and way of thinking. Accept that some degree of risk in an investment portfolio is inherently inevitable. Instead, diversify the investments. Diversification helps spread the risk and maximise profit potential.
Fear of the unknown
One of the most dangerous mindset to have, while investing, is that of fear. When one is in a state of fear, their ability to make good decisions will be compromised.
This is especially true if one allows panic to lead them into selling along with the herd during a market crash.
Instead of selling because they’re afraid, take a step back and examine the fundamentals.
If the fundamentals haven’t changed, chances are the asset will recover once the current volatility smooths out. Change your mindset a bit, you can avoid making a big mistake.
Who you mix with
Unlikely as it sounds, your circle of friends play a role in how you think.
Unkind as it sounds, a person is more likely to make rash decisions if he surrounds himself with people who do the same, over those who surround themselves with more stable personalities.
Create a network with the kind of individuals who are making wise financial decisions one hopes to achieve, and make full use of their knowledge.
We grow by learning from others, so having a network of individuals who have been striving for the same end goals as you are.