Beyond Money

Money isn’t going to solve your problem because you’re become your worst enemy, your desires, lack of discipline, lack of financial planning.

Instant gratification creates liabilities.

Rich is rich because of discipline towards money, money needs to work for you, and know universal money law.

Cashflow of the rich people:

1. Assets are owned

2. Income is earned from assets

3. Expenses are met from this income

4. Balance is used to create more assets

Aging is only you know when you aged.

What’s right wat to build assets?

· Delay gratification

· Think long term

· There are no shortcuts in life

Diversification makes you loss aversion and protect against loss. When you’re buying stocks always remember you’re buying interest in the business.

If you cannot control on yourself, put yourself on autopilot do systematic investment. Always take calculated risk, it’s learning process.

Most investors behavior due to loss aversion:

· Investors tends to go for sure gains

· Take more risk when the returns are negative

· Investors prefer fixed income investments over stocks

· Tendency to held losers and sell winners.

Investing is not buying stocks, its buying business.

Discipline needs to follow for creating wealth:

· Live below your means and save regularly

· Asset allocation is the key of successful investors

· Compounding contributes significantly to long term financial success

· Take advise from a financial advisor

· Check margin of safety while investing in any class of investment.