Money Making Opportunities
Do you know how to make money?
I don’t usually talks about money, for money is not important to me. But since I have learned something in the past and this knowledge might be useful to you.
To most people making money is hard, but to some making money is easy. It is always easy if you know how to do something.
Where could we learn how to make money? Although I am not rich, but I do know the tricks to make money. I am going to tell you why some people can success and why most people failed. I learned the knowledge from lots of reading, thinking and observation of successful people and those who failed.
The first thing you need to understand is, the secret to making money is not only knowledge. Knowledge can lead to opportunities, but before you can make use of the opportunities, you need something else. Before I tell you what that something else is, you need to understand what kind of person you are.
There is a proverb from China, understanding yourself and understand your enemy will give you 100% success. You might ask why we need to understand ourselves to make money.
Great people produce opportunities, they make things happen. People who have the greatness to make things happen. For example, Richard Branson of Virgin Airlines, Bill Gates of Microsoft and Warren Buffett of Berkshire Hathaway. These people who have visions and guts to make things happen. They started their company from zero.
Brave people pursue opportunities, these people are not as good as the ones above. But they can visualize real opportunities when they see them. The trick is you need to have the guts to do it. This is where most people fail in making money is they are afraid. On average, more than 80% of people are scare. Either scare of losing money, simply don’t have the courage to do it, too lazy or don’t know how to make use of the opportunity.
The real reason why they cannot make use of the opportunity?
Courage is the most common reason. They are scared. Scare of what?
Some people are just scare. If you ask them why and they would not be able to tell you. Possibly scare of the unknown.
Scare of losing money is only part of the reason.
To overcome the scare of losing money, they need to learn how to calculate risk. To calculate risk, you need to have a logical and analytical mind. You have to learn how to make realistic assumptions to calculate risk.
For example, if you want to invest in real estate. You can calculate how much it will cost you, then if the worse case happened how much money you might lose. Also in the best case, how much money you can make. Once you have the idea of the risk, you will be able to foresee and deal with the risk.
If you are investing in the share market, you need to understand how to measure the value of a share in the company you want to invest. Analyse the past data and gauge the risk you are taking. Investing in new company shares is more of a gamble since there is no history to refer back to.
Some people are too lazy. If you are too lazy to do anything, you only have yourself to blame. Nothing can cure laziness. If you want to learn how to make money, you have to study hard.
Real opportunities only comes once every few years. For real opportunities, I mean that you are over 90% sure that you will make money. For example, real opportunity due to great financial depression or a economic downturn. Once every few years, it happened repeatedly. If you look back in the past, you will be able to see the pattern. History always repeat itself.
In order to make use of these real opportunities, you need to prepare yourself. You need to accumulate enough money to do the things that you wanted to do. You need to have the knowledge and observe what is happening in the world. So that you understand why things happened the way they do. Otherwise, you will not be able to see the opportunity right in front of you. So the more knowledge you have, more opportunities you have.
Patience. Since real opportunities comes only once a while you need to have patience. Trading the share market everyday is not going to make you rich. Many talented trader make and lose their money in very short time frame. They could make millions one week, but lose it all the next week. You don’t want to do this if you want to have real wealth. Wealth you can keep and pass on to your children.
Globalization. The world is becoming smaller and smaller. No one country can be not affected by the other, so as the financial markets. Things happened in one country can affect other countries, that is why you need to have knowledge about the world events. If you can have a good grasp of the idea, you will be able to avoid losing money and many headaches.
Other people’s money. You need to understand what this term means. There is an interesting movie called “Other People’s Money” by Danny DeVito.
I want to share with you an interview with Warren Buffett: How Average People Can Invest.
I hope you have fun making money. Please leave me a comment on your thought in this subject.
Why we fail to make money?
We need to ask ourselves this question. Why some people seem to make it so simple and others struggle to make a dime. Luck is one of the main factors, but don’t forget that before luck comes your way you need to take ACTION. Without action, luck means nothing.
Learning how to make money is similar to learning to play a game. Practice makes perfect.