There are two main reasons why 96% of people do not spend money to make money. They simply do not have the money to invest, or are afraid of losing money because they believe that investment is a risky business. So where did this belief come from?
1. Conditioning
We've grown and developed under a set of inherited values and beliefs. Because beliefs are true to the person who possesses, it is impossible to behave contrary to those beliefs. So if one of our beliefs is that investing is risky, we will develop the fear of investing, because we lose money.
We are conditioned to evaluate beliefs based on their veracity. The problem is that always true, otherwise, would not believe in them.However, if beliefs are evaluated based on whether or not resources, then those who are not witty fall, and will be replaced with more resources.
By assessing beliefs in this way, would call into question the validity of the statement that the investment is risky. We could look, for example, that successful investors are doing and why their investments at work, instead of looking for people who had bad experiences with investment and lost money.
However, looking for people who lost money we are confirming our beliefs to be true.
2. Financial Advice
All you have to do with the money is highly regulated and legislated. This applies to financial advisers and planners. Must have appropriate qualifications and licenses. It is unlawful for any person to give financial advice, if not the license.
People always asked to seek professional financial advice mind, which is fine, however, should have opened. There are reasons for this.
- Most of the work of financial advisers for their money,
- Financial advice they give must be in accordance with the regulations and guidelines,
- Financial advice should generate benefits to business advisors, in other words, is an adviser to the sale of a product,
- Who will advise the investment is profitable, you must be a very long term investment, because the markets need to recover,
- To advise you on which product to choose, the potential benefits, the duration of investment, etc, but assumes no responsibility for the performance of their boards,
- He signed the document indicating that they are aware of the risks involved, and that can not be maintained nor the employer or the consultant responsible for the losses they suffer as a result of bad advice.
Now that is risky. They keep their commission, regardless of the outcome.
3. The myth
The investment is risky, so is driving a car or eating lunch. As a matter of fact, both the car and lunch can reclaim your life, but still drive cars and eat every day.
The fact is that we have risk management systems in place. We have traffic rules, and we have the food safety standards. We are also implementing agencies to ensure that the risk management system does not work.
The investment also has risk management tools, but somehow financial advisers are reluctant to talk about them. His advice is to diversify which means more shopping for you, and most of the Commission for them.
Insurance is one of the tools. Insurance is available for all these days. Bank wants to see the property insurance and often mortgage insurance. However, the same bank will give up to 75% for loans to buy shares without insurance and without excessive paperwork.
Many people do not even know that you can ensure your actions. Another tool available is to sell bad assets before it falls in value. In the stock market is called stop-loss, and is ready to be executed automatically. There are many other risk management tools. Any person who used to halt the loss as a simple risk management tool, was out of the market last year with good benefits, before the market slid downhill.
Everything in life that make or use poses a risk, but we have invented tools to manage that risk. The investment must be considered in the same way. If properly managed, can be very rewarding. Due diligence and the task is very important. Financial advice is also important and should be used when appropriate, but with an open mind.
1. Conditioning
We've grown and developed under a set of inherited values and beliefs. Because beliefs are true to the person who possesses, it is impossible to behave contrary to those beliefs. So if one of our beliefs is that investing is risky, we will develop the fear of investing, because we lose money.
We are conditioned to evaluate beliefs based on their veracity. The problem is that always true, otherwise, would not believe in them.However, if beliefs are evaluated based on whether or not resources, then those who are not witty fall, and will be replaced with more resources.
By assessing beliefs in this way, would call into question the validity of the statement that the investment is risky. We could look, for example, that successful investors are doing and why their investments at work, instead of looking for people who had bad experiences with investment and lost money.
However, looking for people who lost money we are confirming our beliefs to be true.
2. Financial Advice
All you have to do with the money is highly regulated and legislated. This applies to financial advisers and planners. Must have appropriate qualifications and licenses. It is unlawful for any person to give financial advice, if not the license.
People always asked to seek professional financial advice mind, which is fine, however, should have opened. There are reasons for this.
- Most of the work of financial advisers for their money,
- Financial advice they give must be in accordance with the regulations and guidelines,
- Financial advice should generate benefits to business advisors, in other words, is an adviser to the sale of a product,
- Who will advise the investment is profitable, you must be a very long term investment, because the markets need to recover,
- To advise you on which product to choose, the potential benefits, the duration of investment, etc, but assumes no responsibility for the performance of their boards,
- He signed the document indicating that they are aware of the risks involved, and that can not be maintained nor the employer or the consultant responsible for the losses they suffer as a result of bad advice.
Now that is risky. They keep their commission, regardless of the outcome.
3. The myth
The investment is risky, so is driving a car or eating lunch. As a matter of fact, both the car and lunch can reclaim your life, but still drive cars and eat every day.
The fact is that we have risk management systems in place. We have traffic rules, and we have the food safety standards. We are also implementing agencies to ensure that the risk management system does not work.
The investment also has risk management tools, but somehow financial advisers are reluctant to talk about them. His advice is to diversify which means more shopping for you, and most of the Commission for them.
Insurance is one of the tools. Insurance is available for all these days. Bank wants to see the property insurance and often mortgage insurance. However, the same bank will give up to 75% for loans to buy shares without insurance and without excessive paperwork.
Many people do not even know that you can ensure your actions. Another tool available is to sell bad assets before it falls in value. In the stock market is called stop-loss, and is ready to be executed automatically. There are many other risk management tools. Any person who used to halt the loss as a simple risk management tool, was out of the market last year with good benefits, before the market slid downhill.
Everything in life that make or use poses a risk, but we have invented tools to manage that risk. The investment must be considered in the same way. If properly managed, can be very rewarding. Due diligence and the task is very important. Financial advice is also important and should be used when appropriate, but with an open mind.
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