This is a guest post by Heather Johnson.
Every young entrepreneur
wants to be the next Warren Buffett. Dreams of emerging from humble beginnings to become world’s the next
eccentric billionaire are a dime a dozen in this day and age. However, few aspiring investors take the time
to really evaluate how the successful became so, dismissing them as fiscal
savants, economic prophets, or simply lucky bastards. While this glib revisionism can be comforting
to those who never achieve their goals, it offers little hope to those who are
in the early stages of building for their financial future; if success can only
be gained with the assistance of superior genetics or intervention from the
gods, then why are we all working so hard?
So buck the trend, take
the other tack, and actually try to learn something from your financial
forbearers. Great men and women have
made money in innumerable and diverse fields and have done so using equally
eclectic strategies, and it can be useful to evaluate each individually. However, it can be even more enlightening to
consider the ways in which these success stories are similar. Certain characteristics are held in common by
almost every successful businessperson, and the bulk of these traits can be
studied and mimicked. Cultivate these
proven qualities and you’ll be hobnobbing with Buffett before you know it.
Be cold and calculating: Most people think of successful financiers as possessing an
innate grasp of what makes money, but even the brightest bulbs have to do their
homework. Take this phrase literally and
take it to heart and it does not need to come with the accompanying negative
connotations. You must put in the
research and take all of the necessary precautions before making any
investments decision. Weigh all of the ultimate
rewards against any potential risks. Remember to include things like fees, taxes, and interest in your
calculations. And whatever you do, look
at the big picture and try to avoid linear thinking when considering an
investment.
Be patient: A willingness to sacrifice and postpone rewards until a later
date is another trait not commonly associated with money moguls, but you are
going to have to forego certain luxuries at first if you want to reach your
goals. Put off those unnecessary
purchases until you can really afford them and use any money you’ve earned to
help you make more.
Be thrifty: This goes hand in hand with being patient. Buy only things that you need and when you do
buy, be frugal. Until you are so rich
that you don’t have to think about money ever again, think about it every time
you consider a purchase or investment, no matter how big or small it might
be. There are thousands of little ways
to avoid fees and cut costs; take advantage of as many as you can and your
bottom line will only get healthier.
Take risks: Finally we get to the good stuff. If you set out to get rich (and especially if
you want to do so in time to enjoy the rewards yourself), you have to
understand that there is a decent chance that you’ll end up poor as well. With that in mind, model yourself as a
decision-maker, willing to live with the good and the bad. Of course, do your best to make these
decisions solid ones by doing the research and weighing all of the evidence
before taking on any significant risk.
Have a vision: This is the
trait that the person behind every success story has in common. You must have a plan. Just as importantly, you must have a backup
plan. And finally, keep these plans to
yourself for as long as you can. If you
see someone making moves that could augment your own investments you can bring
that person aboard, but make sure that you do so on your own terms. Have success and you’ll be hailed as the next
great visionary.
Heather Johnson is a freelance
finance and economics writer, as well as a regular contributor
CurrencyTrading.net, a site for currency
trading and forex trading information. Heather welcomes comments and
freelancing job inquiries at her email address heatherjohnson2323@gmail.com .
