Friday, August 14, 2015
The best-selling book "7 Habits of Highly Effective People," penned by Stephen Covey, describes "habit" as "the intersection of knowledge, skill, and desire." Indeed, the habits that define a successful investor require all three. Likewise, the investor himself should have wits, know-how, and passion for the industry -- the real estate industry, in this case.
As an investor, or as an aspiring investor, you should nurture these seven key habits until they become second nature and integral to the way you live:
1. Setting goals
Successful investors have a concrete gameplan. They set clear and quantifiable goals. They have a clear vision of what they want and where they want to be, financially, and they're disciplined and determined about achieving these goals toward this dream.
2. Saving regularly
The successful investor is financially savvy. Saving up diligently is part and parcel of being smart about money. As they say: it takes money to make money, and saving up is your ticket to investing bigger sums for bigger returns, and thus, bigger and bigger savings down the road.
3. Saying no to temptation
The smart investor must learn to say no to instant gratification. Steer clear of situations that tempt you to splurge. Practice discipline and living well within your means. Stick to your budget religiously.
4. Reviewing your finances
Being financially savvy also means that you attend to your finances regularly. Use apps to help you budget and keep track of your expenses and provide you aggregate data and statistics on your cashflow. A savvy investor should be no stranger to the conveniences afforded by the digital age.
5. Keeping up to date with market trends
The successful investor allots time to inform and update himself with the market. He keeps a finger on the pulse of the economy. He's on top of all the important company disclosures and he's always on alert for a good investment opportunity.
6. Learning new things
A good investor is interested in growth: not just in investment returns, but also with regard to himself, as a person, and as an investor. There is always room for improvement, and the smart investor knows this. He doesn’t rest on his laurels. He seeks out ways to get even better at what he does. He's committed to accumulating and furthering his knowledge, skill, and desire.
7. Never giving up
Setbacks are inevitable. Despite this, the successful investor isn't discouraged. He doesn't pack up his bags at failure. He'll dust himself off, learn from his mistakes, and get back in the game.