I was reading an article by Farnoosh Torabi called Top 5 Tips to Build Wealth and Successs and I would like to expand on the Ignored Tip for Building Wealth number 2!
Torabi’s Top 5 Tips to Build Wealth and Success:
- Live Below your Means.
- Bounce Back From Defeat
- Self-Promote
- Have Streeet Smarts
- Buy Cheap
Most of the above tips are very well known or common sense!
But I do like her 2nd, often ignored top tip for building weath and success: “Bounce Back from Defeat“.
All to often, once we start something, we tend to give up if we aren’t instantly a pro at it. This is a huge mistake! If we don’t keep trying and practicing at a task or activity, we never will be able to master it. Imagine if Lance Armstrong stopped trying to ride a bike after her his first failure. If he did stop trying after the first failure, you would be asking, “who is Lance Armstrong”… (l0l)
Surprisingly with investments, many people do exactly that though! They lose money in the stock market and quit. They tend to think someone in out to take their money and that the system is rigged against them. The historic graphs that show the movement of stocks and the entire stock market, so we know that’s not true.
The same is true with building wealth and success. Yeah, I’ve lost money in the stock market, but I’m still up overall… and my game keep getting better each and every year! Someday I expect my investment portfolio to help me accomplish financial independence, and to support me in retirement!
What about you, have you overcome a failure to prevail and become a success? Read this story by the Financial Samurai for a great blogger story about using rejection as motivation for success!
-MR
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Gotta say, losing is very painful… especially the more you put into it. Which is why I think people don’t want to put too much of anything into anything since failure is so bad.
That said, what is life without failure? An impossible dream.
Well said Sam, and I believe you are correct!
I have to admit, in my past, I’ve throttled back a bit because of the risk of failure.
When you don’t put as much into a task, and it failes it’s not as painful. But really it’s a very wasteful practice!
Luckily I grew out of that stage!
I agree: bouncing back from defeat is very important and often ignored. Some people don’t allow a grieving period, but if something you built or invested in crumbles, there is a loss there that most people need to acknowledge. However, after dealing with those issues, bouncing back keeps you in the game, which is the only way you can really win anyway.
Well said friend 🙂
I don’t think I could have said it any better!
I agree, too many people take that grieving process to heart for too long (at one time I did).
I know people that gave up their financial jobs when the market tanked a couple years ago. One ‘adviser’ friend called me and told me to bail and I decided to ride it out, and am glad I did. (Otherwise I would have sold at the bottom.)
However, the stock market losses did teach me to better diversify.
Very interesting post!
I’m with you on this one! I know a few people at work, that did the same thing.
At the time of the downturn, they had more money that I did invested. Unfortunately, now they have as much as I have because they took the investment money out and put it in cash… Very sad!
The housing market will come back too, in most areas…
Yup #2 is key. If nothing else, the big loss of my retirement fund taught me not to put all my eggs in one basket. I still invest in the market but am spending more money now conservative investments (like paying off mortgages).
Making mistakes is okay as long as you learn from them right?
I’m a fan of asset class diversification. So I’ve payed off my house early, contributed to my 401k, Roth IRA, Kids 529 and my brokerage account.
For me, having a mix of asset class investments took the bit out of the downturn in the stock market.
Way to bounce back from defeat is to banish the word defeat from your dictionary. You are defeated only if you accept defeat. If there is a hiccup on your way to success, learn from it and keep on keeping on.
Good idea Arohan!
At the very minimum, you would recover much more quickly if you continually try to purge the negativity!
Thanks for stopping by, and welcome! 🙂
i’d like to add one – find something you are passionate about and turn it into a side gig, preferably a side gig that is passive and residual in nature. it can become a full time gig someday, and there is no better way to expedite wealth building and getting rich than by establishing a successful business
Excellent tip! Thanks Sunil!!!
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Personally I hate failure, but I try to make it a learning experience. Life it much too unpredictable to sit around focusing on feeling bad for ourselves!
I agree (although I was a sulker when I was much younger). Sulking doesn’t accomplish anything!!!
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What’s defeat? Never heard of it.
Superman? is that you!!!
I’ve never met someone that hasn’t been defeated in some way on some plain…
lol, thanks for stopping by.
When you get knocked down, you gotta get up! Great lesson here. I’m guilty of getting really down sometimes and staying down for too long…but I’ve always gotten back up. The one area that really stands out was dabbling in the stock market for the first time…it was pretty rough, but ultimately, you gotta stick with it and it’s more rewarding in the end.
You are absolutely correct! the stock market is a rollercoaster ride of sorts that for sure!
I use to have deeper levels of sadness from downturns. but I have to admit, having my house paid off made me feel like it’s okay!
I think being debt free enables one to take those high risk options. It’s like having a safety net!
Thanks for the great comment! 🙂
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