Successful People Invest In Themselves

Successful people invest in themselves. They recognise that they are their own best asset and commit to personal growth, honing their skills and maximising their potential. This involves a range of habits and behaviours, such as prioritising health, building networks, embracing failure, lifelong learning, and seeking mentorship.

In addition to investing in themselves, successful people also invest their money in a variety of ways, including stocks, ETFs, mutual funds, bonds, CDs, real estate, and cryptocurrencies.

Their own development

Successful people understand that investing in their own development is crucial for achieving long-term happiness and success. Here are some key areas they focus on:

Lifelong Learning

Successful individuals recognise that continuous learning is essential for personal and professional growth. They strive to stay updated in their field, expand their horizons, and explore new areas of interest. They read books, attend seminars and workshops, and constantly seek to acquire new knowledge and skills. This helps them broaden their perspectives, fuel their passions, and stay ahead of the competition.

Health and Well-being

Highly successful people understand the connection between health and success. They prioritise their physical and mental well-being by engaging in regular exercise, maintaining a balanced diet, and getting adequate sleep. They also incorporate practices such as meditation and mindfulness to maintain a healthy work-life balance and maximise their productivity.

Building Meaningful Networks

Success rarely happens in isolation. Successful people understand the importance of building strong networks and fostering meaningful relationships. They focus on establishing connections, sharing knowledge, and supporting others. They are willing to seek and offer help, recognising that collaboration and mutual benefit are key to achieving long-term success.

Embracing Failure

Resilience and perseverance are essential traits of successful people. They view failure as an opportunity to learn and grow. Instead of giving up in the face of setbacks, they analyse their mistakes, adapt, and use their experiences to improve their future performance. They embrace challenges and maintain a positive mindset, understanding that growth and learning often come from overcoming obstacles.

Seeking Mentorship and Guidance

Navigating the path to success can be challenging, and successful people recognise the value of mentorship. They seek guidance from individuals who have already walked the path, learning from their experiences and insights. Mentors provide fresh perspectives, constructive criticism, and encouragement to step out of their comfort zones. Successful people also understand the importance of surrounding themselves with a supportive community that can help hold them accountable and push them to reach their goals.

Time Management

Successful individuals understand that time is a valuable asset. They prioritise their tasks, delegate when necessary, and make time for rest and rejuvenation to prevent burnout. Effective time management enables them to make the most of their time, maintain a healthy work-life balance, and stay focused on their goals.

Stocks

When you invest in a stock, you are buying shares of ownership in a public company. If the company grows and performs well, the value of your shares increases, and you can earn a profit by selling them to another investor.

There are two main ways to invest in stocks: by purchasing individual stocks or by investing in stock mutual funds or exchange-traded funds (ETFs).

Individual Stocks

If you choose to invest in individual stocks, you will need to research and select specific companies to invest in. This approach requires more time and knowledge, and it can be challenging to build a diversified portfolio without investing a significant amount of money. However, investing in individual stocks can pay off handsomely if you make wise choices.

Stock Mutual Funds or ETFs

Stock mutual funds or ETFs allow you to purchase small pieces of many different stocks in a single transaction, providing instant diversification. Index funds, a type of mutual fund or ETF, track a specific stock market index, such as the S&P 500, and aim to replicate its performance. This approach is less risky than investing in individual stocks and is often recommended by financial advisors.

Things to Consider

• Risk and time horizon: Stocks are generally suitable for people who don't need their money anytime soon and have a long-term investment horizon. If you are investing for the short term (less than five years), stocks may not be the best choice due to their volatility.
• Budget: The amount of money you need to invest in stocks depends on the share price. Some brokerages offer fractional shares, allowing you to invest a small amount even if it is less than the share price. ETFs also tend to have lower investment minimums than mutual funds.
• Research and knowledge: Investing in individual stocks requires more research and knowledge about the stock market and specific companies. If you don't have the time or expertise, consider investing in mutual funds or ETFs or using a robo-advisor service.
• Diversification: Diversification is important to reduce risk. Individual stocks are generally recommended for a small portion (10% or less) of your portfolio, while the bulk of your investments should be in diversified products like mutual funds or ETFs.

Tips from Successful Investors

• Do your research: Legendary investor Warren Buffett recommends focusing on the fundamentals and management quality of a company before considering the price of its stock.
• Be forward-thinking: Successful investors like Carlos Slim look ahead and invest for the long term, rather than chasing short-term gains.
• Be patient: Billionaire investor Prince Alwaleed Bin Talal is known for his patience, holding onto his investments through market downturns.
• Have conviction: While diversification is important, don't diversify away your best ideas. Investor Bill Gross advises putting a significant portion of your portfolio (around 10%) into your strongest convictions.

Real estate

One option is to buy and manage rental properties. This is a good choice for those with DIY skills and the time to manage tenants and property maintenance. It can provide regular income and potential appreciation, and many expenses are tax-deductible. However, it can be tedious and unpredictable vacancies can reduce income.

Another option is to invest in real estate investment groups (REIGs). REIGs are ideal for those with some capital who want to own rental properties without the hassle of managing them. They are similar to mutual funds, pooling money from multiple investors to invest in rental properties. A company then collectively manages all the units, handling maintenance, advertising vacancies, and interviewing tenants.

For those looking to make a quick profit, flipping houses involves buying undervalued properties and selling them for a higher price, often after a renovation. This requires significant experience in real estate valuation, marketing, and renovation, as well as good relationships with contractors.

Finally, online real estate investing platforms, also known as real estate crowdfunding, allow investors to join others in investing in large commercial or residential deals. This provides an opportunity to diversify into real estate without a large financial stake, but it can be illiquid with management fees reducing profits.

Overall, investing in real estate requires knowledge, talent, organization, networking, and perseverance. It is important to understand the different types of real estate, the risks involved, and the amount of time and capital required for each investment strategy.

Their health

Successful people invest in themselves, and one of the most important investments they can make is in their health. Here are some ways to invest in your health:

Education

Before investing in your health, it is crucial to educate yourself. Learn about the nutrients your body needs, the type of exercise that is right for you, and how to take self-care to the next level. However, be cautious when choosing your sources, as there is a lot of misinformation on the internet. Always ensure that your sources are reliable!

Exercise

Turning exercise into a habit is a great way to invest in your health. It is scientifically proven that exercise is beneficial for both physical and mental health. Regular exercise improves memory and thinking skills, reduces the risk of heart disease and cancer, strengthens the immune system, and builds stronger bones. It also boosts your mood, leading to a healthier life overall. If a gym membership is too expensive, there are many free workout videos available on platforms like YouTube, ranging from high-intensity interval training (HIIT) to yoga and pilates. Running, walking, or biking to work are also great ways to incorporate exercise into your daily routine. Aim for at least 10,000 steps a day and try to make it more challenging over time by increasing the distance or speed.

Nutrition

Paying attention to the food you eat is another important aspect of investing in your health. According to studies, a diet rich in vegetables and fruits lowers the risk of cardiovascular disease, cancer, and diabetes, and improves vision, digestion, and blood pressure. Vegetables also make you feel fuller, which can lead to unintentional calorie limitation and weight loss. It is recommended to avoid sugary and highly processed foods, as well as "low-fat" foods, as these often contain a lot of sugar to preserve the original taste. Instead, opt for whole foods, organic when possible, as these provide essential fiber, vitamins, minerals, and phytonutrients.

Sleep

Getting enough high-quality sleep is vital for maintaining your health. Aim for at least 7-8 hours of sleep every night. This will help improve your mental and physical health, reduce stress levels, and lower your risk of chronic conditions such as obesity, type 2 diabetes, and cardiovascular disease. Establishing a regular sleep and wake schedule, finishing your last meal 2-3 hours before bedtime, avoiding alcohol before bed, and being mindful of evening light exposure can all contribute to better sleep.

Stress Management

Managing stress is an important part of investing in your health. Too much mental and emotional pressure can lead to serious health problems. Find what works best for you to manage stress, such as meditation, listening to music, walking, or exercising. If you need additional support, consider seeking professional help.

Building networks

Building a network is an important component of achieving success. It involves creating a web of personal and professional connections that can provide support, feedback, insights, and resources. Here are some tips to help you build a strong network:

Understand the Different Types of Networks:

Successful networking involves building three types of networks: operational, personal, and strategic. Operational networking focuses on cultivating relationships with colleagues and stakeholders to perform assigned tasks more effectively. Personal networking involves connecting with like-minded individuals outside your organisation for learning and personal growth opportunities. Strategic networking is geared towards achieving business goals by building relationships with people who can help uncover and capitalise on new opportunities.

Reallocate Your Time:

Networking requires time and effort. Learn to delegate tasks and free up time to focus on building and nurturing your network. Prioritise networking activities and make them a regular part of your schedule.

Establish Connections:

Look for opportunities to interact with people outside your immediate function or organisation. Attend industry events, join professional associations, participate in alumni groups, and engage in personal interest communities. Take advantage of social interests to create opportunities for strategic conversations.

Give and Take:

Networking is a two-way street. Don't just wait until you need something to reach out. Continuously look for ways to add value and support others in your network. Be generous with your knowledge, resources, and connections. The more you give, the more you will receive in return.

Seek Mentorship and Guidance:

Connect with individuals who have already achieved success in your desired field. Seek their guidance, advice, and mentorship. They can provide valuable insights, help you avoid pitfalls, and accelerate your growth. Their support and connections can open doors to new opportunities.

Build Meaningful Connections:

Focus on building long-lasting and meaningful relationships. Take the time to get to know people, understand their goals and challenges, and look for ways to support them. Strong connections are built on trust, mutual respect, and a willingness to help each other grow.

Leverage Your Existing Network:

Don't underestimate the power of your current network. Reach out to colleagues, friends, family, and business associates. They may have valuable connections or insights that can help you expand your network. Ask for introductions or recommendations to relevant individuals or groups.

Develop an Online Presence:

Build an online presence through professional networking platforms and social media. Keep your profiles up-to-date, highlighting your experience, interests, and qualifications. Engage in relevant forums and discussions to showcase your expertise and connect with like-minded professionals.

Stay Informed and Adapt:

Stay updated on industry trends, new technologies, and changes in your field. Continuously educate yourself to add value to your network. Be adaptable and open to new ideas and opportunities. Show that you are proactive and committed to growth.

Invest in Yourself:

Investing in yourself is crucial to building a strong network. Take the time to learn, grow, and develop new skills. Attend seminars, workshops, and industry events. Stay informed about different investment strategies and opportunities. By investing in your personal growth, you become a more valuable asset to your network.

Frequently asked questions