Can You Become Wealthy Investing In the Stock Market?
Some say yes. Others say no.
Clarify What Wealth Means For You
First, you must clarify what “wealthy” means to you.
Once you define what wealth means for you, you can determine, based on market trends, how much you will need to invest in the market and for how long based on the average rate of return because if you invest in the stock market, you are guaranteed to lose money (which is why so many people don’t want to invest; they’re scared of losing, but the markets historically recover. Hence, unrealized losses don’t have to become realized unless you pull out. Instead of pulling out, keep up the momentum with your money. Some people recommend moving your money into other ventures after you’ve recouped your original investment).
It is recommended that stock market investors invest for the long haul. What is considered the long haul? This is debatable, but I would say ten or 20+ years (the longer, the better). Some believe that this time takes too long to build wealth, and for some, it is a lengthy rate of time.
How Long Are You Willing To Wait To Build Wealth?
This leads to the next question you should ask yourself:
For the amount of wealth I desire to earn, how long am I willing to wait to amass it?
If you’re unwilling to wait for an extended duration, then the stock market is likely not the best way to build wealth unless you are a day or swing trader, which takes considerable skills to master and yield returns.
A Recommended Strategy
If you’re willing to wait to build wealth, elevating your income is a great way to suffice your income and accelerate the pace at which you build wealth. This is actually more simple than many people believe.
It just requires brainstorming, focus, and prioritization.
There is no primary or preferred method for increasing income, but if you’re interested in elevating your income, my first suggestion is to start with your current skills.
Here are two questions I want you to ask yourself:
What are you already good at?
What are you already making money at?
Start focusing your energy on these two areas and get creative, and you can create a positive shift in your income more quickly than you thought.
If you notice income cap limits for your current skill sets or earning methods, then it’s time to seek new skills and avenues for income.
What Do Many Wealthy People Have In Common?
You might notice that many wealthy people share a common trait: They own a business.
They don’t stop at investing; they also own a business.
Robert T. Kiyosaki believes that the best way to build massive wealth is to operate in the B (business owner) and I (investor) quadrants. The E (Employee) and S (Self-Employed or Small Business) quadrants can be lucrative, but they’re not always intuitively the best way to build wealth.
To build serious wealth or passive income, you must operate in at least the B or I quadrants.
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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.