what is it about YOU?

Discussion in 'Investor Psychology' started by Xenia IM, 18th May, 2015.

  1. Deltaberry

    Deltaberry Member

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    Balanced? At a wild guess, I'd perceive myself to be say:

    Ambition 90%
    Focus 65%
    Risks 50%
    Work hard 60%
    Determined 65%
    Vision 75%
    Planning: 85%

    I have one friend for example he's done quite well early on, but he is always sort of struggling with the next concept because he's probably:

    Ambition 70%
    Focus: 5%
    Risks: 100%
    Work hard: 40%
    Determined: 60%
    Vision: 100%
    Planning: 40%

    I also have another friend extremely smart guy, has a good job, but probably not a lot of capital because:

    Ambition: 40%
    Focus: 90%
    Risks: 15%
    Work hard: 100%
    Determined: 50%
    Vision: 2%
    Planning: 10%

    I mean if you wanted to truly make gazillion dollars you'd probably want to be at 100% for everything? Maybe that's not true though. Basically it's very hard to get the right balance, that's why I chose the word "balance".

    Edit: added another important one I think which is planning. Having a plan is very important. You may be ambitious and aim high, have a lot of focus on that end goal, work hard at it and am determined to make it work, even have the vision to see what the game beyond the end game is, but you need to be able to plan the execution - the little steps along the way.

    The most aggressive guy I've probably ever come across (he's 28 and is building 3 townhouses in inner city Sydney, 6 in inner city Melbourne, 40 apartments in inner east Melbourne, 3 houses in China, is an advisor to a provincial government in China, has probably another 5-6 houses/apartments in Australia, runs a cold storage center, runs two co-office sharing businesses, runs a small hedge fund in Guangdong, is in Shanghai for a meeting to drum up some other deal last week I messaged him and then going to Beijing to meet a few other companies) is probably:

    Ambition: 90%
    Focus: 95%
    Risks: 100%
    Work hard: 100%
    Determined: 100%
    Vision: 25%
    Planning: 100%

    He will get super rich one day if he isn't already - just a question of how much. His biggest weakness is he has no vision. He has no interest in the big picture, politics, what's good for society, philosophy, music, TV, are bicycle lanes good for people, whether we should be using solar energy or coal in the future etc. Like most of his countrymen running manufacturing companies, they don't invent (ie have vision), they copy and make 100x more than what you do at 10% the cost (ie every other attribute). But hey, it's obviously worked. Last I checked China is right on America's tails as largest economy the world has ever seen.
     
    Last edited: 19th May, 2015
  2. tomlemke

    tomlemke Member

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  3. skater

    skater Capitalist

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    I don't know the answer to the question. All I know is that I'm 'different'. I think differently to most people, especially in terms of finance. I've never really understood the spending habits of the average person.

    Even before we started buying properties, we tried all sorts of things to get ahead, although nothing worked & we were broke. Back when interest rates hit 17.5%, it would have been so easy to just give up, especially as we were both out of work with a couple of babies, but we didn't. We just buckled down & did what we had to do, to get through it.

    I've always found a way to get what I want, despite a lack of funds. This was especially true when we first started investing. We wanted it, so found a way to do it while not impacting on our way of life.

    And now that we are starting to reap the rewards of our investing, friends & family say how 'lucky' we are that Hubby can retire early. Well, if luck is hard work, then heck yes, we are lucky. The truth is that most of those who perceive us as lucky have been on a larger income than us the entire time. We just spent it differently.
     
    Jess Peletier and BayView like this.
  4. BayView

    BayView Member

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    Kudos on the way.
     
  5. lizzie

    lizzie when i grow up ...

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    I'm with you on this one Sister ... I have never understood the need to pay $700 for a mobile phone when the $150 jobbie does just as well (and I only pay that much for the camera quality).

    ... or the expensive house with all the mod-cons - only have to watch a 10yr old series of Grand Designs to see all the "latest" gadgets installed at vast expense that are no longer relevant.

    ... or the flash car - or the expensive hairdresser - or the name brand designer handbags.

    I just have never fitted into that culture. Nor have a fitted in to the dowdy domestic role of idolising your husband and doting on your (perfect) kids.

    It does make it a lot harder to find like-minded people ... especially being female ... but I'm happy with my own company and the few female friends of the same mindset.
     
  6. Allgood

    Allgood Member

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    I was going to say I'm just lucky but Skater beat me to it. :D
     
  7. Prop_Perspectiv

    Prop_Perspectiv Member

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    Great thread. I've felt this way for a long time - not necessarily the *separation* stuff but more the *why won't you do this?* type stuff. I think the answer to why so many people just plod along in life is because of security.

    What skater wrote resonates with me as well. We tried lots of things first before we could afford to get into property. We have always been different. I was going through display homes when I was 17 planning my first house, first house was built by the time I was 21. Didn't leave much room for drinking or partying.

    I think people are scared to be honest. Everyone knows someone who tried to "make it" and ended up loosing everything. Or they are the stories I constantly get told anyway :rolleyes: And TBH, it IS scary. For me, right now, right at the beginning. I keep making mistakes, stupid ones. The difference is that I won't give up and I won't let the mistakes make me quit, I'll learn and move forward.

    I think that is what sets us aside from the majority of people - resilience, perseverance and faith in our own ability. There was a quote I read a while ago (that I can't find now to honor the source) that said:

    "An entrepreneur is someone who spends a few years working like most people won't, so that they can spend the rest of their life living like most people want to."

    I don't necessarily think everyone here is an entrepreneur but this did strike a cord with me.
     
  8. 2FAST4U

    2FAST4U Member

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    I'm only at the beginning of my investment journey but so far I'd say it's having a plan, self-education, and most of all being wise and willing to use debt to create wealth. I've read all the typical Property 101 books as well as a couple of the 'rich dad poor dad' books, but also have an Economics background so I've seen how the economy has shifted under the current neo-liberalist system. I've only got 1 house and am currently searching for a 2nd (1 day want to own 20- hey got to be ambitious:rolleyes:) but I'd say it's the mindset. The average person buys 1 house and then spends the next 20 years paying it off and doesn?t even think of investing until they're debt free. Of course by that time they've let 20 years of opportunity cost slip by and whilst the PPOR has created equity they missed out on a lot more gains by not taking advantage of leverage.

    Plus the other common mistake people make is not saving/investing their incomes. If they get a pay rise instead of using it to invest most people will just upgrade their cost of living (upgrade to better PPOR, purchase new cars, go on overseas holidays etc.) so they are back to the rat race. Don't let income decide your fate. Most people believe that your limited to your occupation or income and it?s only the investment bankers and doctors who can be rich. It's not just your income that matters it?s what you do with it.

    I'm actually glad that most people take a consumerist mindset though because it keeps the economy going around. Plus at the end of the day for investment to work you always need to have people at the bottom or it doesn't work out.
     
  9. RPI

    RPI Member

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    Grew up dirt poor with a mum on benefits. She was a great mum but never had 2 cents to scrape together. Read that property was a reason for a lot of people making the rich lists and mum never owned a house.
     
  10. bobby85

    bobby85 Member

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    I remember watching TV in high school and seeing a segment on some property investor with 30+ properties and millions in equity. Typical sensationalist crap from the Today Tonight genre, but it did catch my attention.

    I kept that on my mind most of uni but didn't buy until I started to work full time.

    People have told me I'm greedy, I'm risky, obsessed with property/money without even knowing my true reasons behind investing = to obtain financial security to focus on the more important things in life!

    Funny thing is, the naysayers have all bought properties now (unsurprisingly during the peak of the Sydney market... FOMO maybe)
     
  11. rchad

    rchad Renee

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    Success mindset

    I can relate to these posts - it starts feeling lonely at times trying to sustain friendships with long standing friends when you sense resentment when you share excitement about exploring new opportunities to build financial security (btw I don't share anymore with these groups of people)...I work to keep myself accountable, to achieve what I say I want to achieve...have noticed over the years many people who are struggling and living pay cheque to pay cheque (many with middle class upbringings) choose to keep blaming their parents for why they are not moving forward in life or stagnating (esp now we are in middle age)...I suspect fear of failure holds people back - I am often very fearful of new endeavours but make a plan to make it work, give things a go and often make mistakes - decided to reframe making mistakes as not something to fear and avoid but to use it as a learning experience...I can also relate to the posts about people's high consumption lifestyles...we simply cannot afford the lifestyle of some friends paying literally thousands a month on lifestyle...with all the reading I have done I work to live below my means to get ahead. I do find this forum a great medium to stay connected with positive successful people
     
  12. Deltaberry

    Deltaberry Member

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    Well if you put some perspective around success and money and properties in particular, we all get taken out in a box at the end of the day as a friend says. If all you've done your whole life is save and invest but never consumed, I don't know what the point is.
     
  13. willair

    willair xx

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    Very easy to fit in if you only went to grade ten and started in the gutter like everyone else,but people will always find mistakes to repeat I only have to go for a walk in the park,and some poor buggers that live there think they are successful,and maybe they are..
     
  14. Rickardo

    Rickardo Member

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    This is a very interesting question and one I?ve thought about many times but still don?t have a good answer for.

    I clearly recall my first few early moments around saving ? early primary school when I would religiously deposit money into my bank account, and being at a friends house and seeing one of his parents old deposit books with a (what I thought was huge) regular payment going in. From those points onwards, I knew saving was for me. I also recall early morning Saturday house inspections when I was around 12-15 years old with my uncle who isn?t the greatest investor but was always looking ? once again it just felt ?right? to me and I knew I wanted to own properties.

    I have basically kept with those principals for the next 20+, obviously learning a lot more and moving into investing rather than saving. But what made me like this? Why did I turn out this way, when my environment was not really conducive to nurture my current mindset? I still can?t work it out.

    It must have already been in there somewhere, because growing up my mother made extremely poor money decisions. I never really had a saving/investing role model. So I just kept on saving, and around age 16-20 I started to educate myself through books, articles, forums, etc. The real keys for me were for some reason thinking differently from the start, a seed or a thought as a child that what people seemed to be doing didn?t really make sense to me, and I wanted to do something different.

    This was followed by self-motivated education and learning, then by a real desire to get started, staying disciplined, taking action, continual education and having a long term plan and focus. I really don?t think I?m that special but do know I think differently from almost all my working colleagues. I am probably about 20 years financially advanced on their situations, and when they tell me things about their financial situation I simply cannot believe it - obviously a massive difference in mind set.

    But back to the question, what is it about me? It definitely wasn?t the environment I grew up in, so I take it back to that small niggling I always had about why I perceived what people were doing just didn?t seem right to me, and my self motivation to learn how I could improve my own situation. Why I have it, when others don?t, I still don?t know.
     
  15. LeoT

    LeoT Member

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    I think some people finally just snap and say enough is enough. They realise (something happens, or they hit rock bottom or they have a moment etc) there has to be a better way to achieve their goals and when they discover investing they realise, dam, is this really possible? Then some go on to develop a burning fire, a hunger to learn more and apply it. I think this happens to different extents on a spectrum of hunger/burning fire to do it and down to a lesser extent, which will equally correlate to their subsequent level of success.

    Leo