Have you ever wondered, why some people’s wealth building activities are met with success after success whereas others constantly crash and burn? The key is a solid foundation to wealth building.
In this interview, Rob Aalders and Nate Chai share several tips on how to create a solid foundation to build wealth. This interview was taken at the JT Foxx family reunion (now Mega Success event) for wealthy entrepreneurs and business people.
Should you have a slow internet connection or cannot hear the interview, Rob’s tips are summarised below. However, we recommend you watch/listen to Rob for more insights than our notes provide.
Wealth Building Foundation Tip 1
Greed vs Fear
To be wealthy you need to get education on what to do with money. Most people use two vessels to build their wealth; stocks and property. Rob chose stocks.
His philosophy with stocks is that you can reduce the charts, figures, and stats to two simple principles; greed and fear. In the stock market, greed and fear are related depending on the politics, the country’s economy but most commonly by the company’s yearly reports. Understanding greed and fear is a foundational indicator in the stock market that dictates when to buy and when to sell.
Rob warns against trying to predict what will happen next as that will burn you. You key focus is to figure out what the people buying see, and what the people selling are afraid of.
You’re like a shark in the ocean looking for fish to eat. A shark does not guess when the next big shoal of fish will arrive, it simply wades through the sea of information looking for an opportunity.
Wealth Building Foundation Tip 2
Build a Golden Nest Egg
Rob’s second piece of advice was to create a golden nest egg roughly worth $500,000 as fast as you can. If invested correctly, you will be wealthy for the rest of your life. Now $500,000 is a huge sum of money and appears to be an inconceivable amount to have stashed away.
So how do you begin to amass that golden nest egg?
Rob’s advice is to live like a spartan, cut down on all your luxuries and focus on investing as much as you can. Don’t waste money on coffee, sandwiches or snacks. Remember that every £1 you invest today will be worth £2 after 10 years. Whilst that doesn’t sound incredible, remember that you’re literally doubling your money from little to no effort.
Now, before you cancel your Netflix account, move back in with your parents, and stock up on gruel, Rob does have some other key pieces of advice.
Wealth Building Foundation Tip 3
Diversify your investments
Whilst you need to be regularly saving and investing in the stock market, you also should invest in other areas of your life. The two big ones are education and health.
Health is one of the best investments you can make because poor health will cost you. Bad health will impact on your ability and effectiveness to work. If you can’t work, you can’t make money.
In addition, if your health is impacted because every minute is spent chasing the money, you may end so ill that you will be unable to enjoy the spoils of your toils.
Rob also shared that you need $500,000 if you were expecting a 10 per cent return per year. But what if you could get 20 percent? This is where education comes into play.
The more education you have, the more knowledgeable you will have to leverage your money and understand how to use your money more effectively. Similarly, you need to develop a mindset that seeks out knowledge and that wants to learn how to do more.
The final lesson Rob shared with us was….
Wealth Building Foundation Tip 4
Four mindset changes you need to make
In order to be coachable, you need to strip away your ego. The truth is more important than being correct, listen to the people that are where you want to be.
Find your “why”
To become wealthy is a tough process that will be full of setbacks, mistakes, and loss. Your “why” isn’t material possessions, rather the aspects of life that truly frustrate you. For example, not being in control of how you spend your time, or the fear of not being able to help out your loved ones in case of a disaster.
Need to love the process
Whichever route you take to wealth you need to love doing. If you don’t truly love the process, you’re going to end up burned out, defeated, and like you’re wasting your time.
Surround yourself with people that demand everything from you
Finally, the journey to wealth is long and hard and you will need an experienced guide to coach you along the path. Find people that have already walked down your chosen route and listen to their advice. You must find people that pull you up, that make you want to be a better person, that make you want to excel at whatever you do.
Huge thanks to Rob for sharing his insights with us. If you’re looking to get 20 per cent returns on your investments or would like more information about the topics mentioned in the interview, email Rob at [email protected].
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In the meantime, if you want to learn more about property investment from other people’s journeys, check out the following articles:
- How to build a one million property portfolio in just 2 years
- How to turn £6250 into £1.5 million – one man’s incredible property journey
- Lessons from my first property lessons
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