Are you an investor determined to make it big in business and the investing quadrant which is the basic quadrant of the ultra rich people, likes of Bill Gate, Warren Buffet, Carlos Slim, Alinko Dangote and others on the Forbe's list of the richest individuals in the world, then you must really pay close attention on what am about to share with you concerning the three basic 'Es' needed for great wealth creation as listed below.
1. EDUCATION: You must have adequate knowledge of the type of business or investment you are planning to make and also how to be able to manage your resources, financial statements and to know what type of investment is best for you to invest in at a period of time. For example if you want to invest in a shoe manufacturing company, you should be able to tell from the financial statement of the company if they are making profits or losses and be able to tell the difference between a bad and a good investment.
Not everyone knows the difference between a good and a bad investment, a lot of people go into investing blind folded without taking the time to learn about the basics of investing, no wonder the rich gets richer and the wanna be rich who do not have the basic education of business and investing gets poorer sadly.
2. EXPERIENCE: Experience as most people would argue is the best teacher, the same cannot be overlooked in the world of business and investing. Most persons are too afraid to take a leap into the world of business and investing because they think it is very risky and so some end up not making any meaningful progress even with the education they acquired. You must have to be on your toes and take that calculated risk of going into the world of investing or business so you can profit immensely from the experience that will enable you move one step ahead from those who do not feel like doing anything and expect manna to fall from heaven. There are two category of persons, one is the book smart person, the other is the street smart person with experience, you should strive to be both.
3. EXCESSIVE CASH: The third and final 'E' is that of excessive cash which is what most persons are aiming for without spending more time with the other two 'Es'. The plain truth is that without the other two 'Es', there is no way you can make it to the third 'E' which is excessive cash. In fact the litmus test for having excessive cash is having both the education and the experience and that is why most persons fail in achieving their desire for wealth. The hierarchy for the three basic 'Es' for wealth creation is shown above.
For more insight on this topic, I will suggest you read the book 'Rich Dad's Guide to Investing' by best selling author, Robert T. Kiyosaki and Sharon L. Lechter.
No comments:
Post a Comment