Becoming a millionaire isn’t enough. You want to stay a millionaire too!
Here are six tips that can help you take the right kind of investment risks and achieve (and keep) a millionaire mindset:
Do you know what you really want? Maybe you have dreams and goals, but you don’t actually know what’s needed to achieve them. To make the right investments you need to get clear on what you want and how to get there. For example, look at what your dream life costs, including everything from the trips to the cars and the houses. It may actually surprise you how much is needed to attain your level of success. You may actually be way closer to reaching your goals than you realize.
Goals are great for one-time success, but systems are where predictable and repeated success is at. Systems will always be more sustainable than any one time goal you set. Taking investment risks that offer sustainable success requires creating effective systems around those investments. It took me crashing and burning before I learned how to build systems that could bring me more sustainable success than just having individual goals. The key is having systems that can change and grow as you achieve your goals.
I’ve been investing professionally since the early 2000s. When I started out, the market was just going up and up and I genuinely believed that trend would only continue. I remember being told by “salty seniors” to be cautious and that the market wouldn’t just continue to go up. I was skeptical and didn’t believe it. It wasn’t until I fell flat on my face and experienced loss that I understood that my short, positive experience in the market wasn’t the exact way that the market would always function. I had to learn to make decisions that went outside of my timeframe in the market. Studying the market and its trends can help you stay in the game longer and take calculated risks that will be fruitful in years to come.
Limit Your Limits
Millionaires understand that most limitations just exist in the mind. Fear is the one ingredient that can cause us to make the wrong investment moves. We may avoid calculated risks, play smaller, dream smaller and avoid challenges that help us experience the gains we want. I had a friend who came to the U.S. with just a few dollars to his name. He had a dream of building a condo building in Miami and he made it happen. He built a whole building for $70 million and sold it for $120 million. This was his very first deal. His approach and experience completely challenged me and my view of the calculated risks I was taking. What did I learn from this? Just do it. You will find a way.
Watch the Trends
New York, Chicago, and LA are all markets that are driving people out to other secondary and tertiary markets. These markets haven’t seen institutional capital yet. Because of this, there is way more space for individual investors to capitalize on these spaces. Here’s an example of this type of calculated investment risk: I’m investing in Milwaukee because Chicago is driving people out to Wisconsin.
Likewise, the pandemic has changed how we do work, which impacts real estate. How? Pay attention to the office building market and the hospitality market. Both of these spaces have a huge opportunity to build into a market that is only expected to swing back and grow. In short, there is opportunity for you. Don’t be afraid to go out there and take a calculated risk!
Readers are Leaders
The most successful people I know are avid readers. Calculating good investment risks is dependent on learning more about real estate, your market, your goals, etc. I cannot stress how game changing reading was for me and my success. The ability to gain years of wisdom from a few hours of reading is truly a steal. You can learn so much information that can drastically impact your investing game.
By implementing these tips, you can take better calculated risks that lead to sustainable gains. Becoming a millionaire isn’t just a goal, it’s a mindset, and these principles will get you there. If you’re interested in more tips to help you live your dream life, check out this video.
LinkedIn: Jake Harris
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