The Property Podcast TPP605: How people REALLY get rich
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Oct 17, 2024 Discover the real secrets behind wealth accumulation by exploring the insights from a new book. The hosts debunk financial myths, encouraging a fresh approach to investment strategies. They tackle the idea of risk, arguing that calculated risks can lead to financial success. Key differences between investing and gambling are highlighted, with an emphasis on leveraging personal strengths in decision-making. Plus, learn how property investment plays a crucial role in building wealth while managing potential downsides.
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The 'Too Risky' Myth
- Traditional personal finance advice like diversification and avoiding risk doesn't always align with how people actually get rich.
- Wealthy individuals often focus, use leverage, and make calculated bets on individual assets.
Focus for Riches
- Focus your investments to build wealth, rather than diversifying solely for comfort.
- Be honest with yourself about your risk tolerance and financial goals.
Managing Downside
- Manage investment risk by allocating your net worth into three buckets: protection, lifestyle maintenance, and lifestyle improvement.
- Size these buckets according to your risk tolerance and goals.
