Jim Carrey is one of the most famous actors of our time. He became incredibly wealthy and then disappeared from the spotlight of the world for a while. When he came back, he remarked that he wished for every single human being on the planet to become wealthy, only to realize that it’s not the most important thing in life.
When people with an average income look at a statement like that, they’re filled with a bit of envy since they believe that it’s easy for them to say that. Even though there can be no correct side, there are a couple of things that should be noted. First of all, having an edge in making money is important. That’s ingrained in our existence.
We’re curious by nature, and if we pursue our interests, the money will come. However, the second thing that’s important is surviving life with a large portion of wealth. That’s why Nassim Taleb remarks that you should avoid ruin at all costs.
The survival mindset is something that needs to be applied to your investment strategies. If you take all of your money out during a bear market, you’re putting your finances in ruin. Here are some things that you should consider when it comes to implementing the best investment strategy. Follow this link to read more.
Become financially unbreakable
Becoming financially independent will teach you a lot of lessons. First of all, you’re going to realize that rent is quite expensive. Next, you’re going to realize that utility bills cost a lot, and going out every weekend will put a massive dent in your wallet.
For that reason, you need to brush up on your economics knowledge and find out which investments can cover your monthly expenses while you make even more money. If you become financially unbreakable, then your returns are going to be massive. That can only happen if you stick around in the market for a while.
Here’s an interesting viewpoint. Nobody wants to keep cash at hand during a bull cycle. Why on Earth would you want to hold cash if you buy a stock and it goes up 50 percent in a couple of months? It makes no sense. Let’s say that keeping cash in a bank gives you 0.1 interest over a year. On the other hand, holding a specific stock gives you a 9 percent return per year.
When you wake up in the morning, the thought of losing 8.9 percent on an annual basis will make you angry. That’s why the best gold IRA companies can help out in that situation. That thought is also not going to let you sleep peacefully at night. Now, let’s look at a different scenario.
What if the next bear market is near and keeping all of your assets like cash saves you much more than that 10 percent you’re fussing about. The power of compounding never relies on getting massive returns once in a while. Instead, it focuses on earning a little over the longest period of time that you can endure.
Holding your assets when everyone is panicking and selling is the best way to become wealthy. That’s one of the reasons why gold is so lucrative. It’s a form of money that has a much higher dividend than holding cash, but not in literal firms.
There’s no company that will reward you with an extra ounce of gold just for keeping a couple of bullion. Instead, the price of bullion keeps going up, and the rest of the market fluctuates. Looking at graphs that compare buying assets in dollars versus weight in gold will show you the true power that precious metals have.
Price manipulation is real, but value never changes. Gold has been and always will be one of the best assets to stockpile, even when you think it’s not doing anything. Stability and longevity are crucial.
Plan for failure
It’s much easier when you plan for failure. Then, success will come to you as a surprise, and you’re going to be much happier. If you’ve lived long enough, then you’ve probably realized that nothing goes according to plan.
If something goes too well, it seems suspicious, and then your suspicions become a reality. When you’re thinking about your retirement, plan for the unexpected. Let’s say that your retirement is going to be 30 years from now.
Did anyone expect how the future was going to look like 30 years ago? No one could have predicted cell phones, the internet, cryptocurrencies, the Metaverse, colonizing other planets, the housing boom, as well as a pandemic that halted the entire economy.
The only time that a plan is worth a penny is when it survives the events it takes into consideration. That’s why good plans leave a lot of room for error. It’s nice to project your returns on a 10 percent or 8 percent interest rate. But would you be alright if that percentage dropped down to 4 percent? A good plan takes the minimum viable performance to be true.
Any other profits would just be a bonus. For that reason, you need to be frugal in your spending, have a loose timeline, and think flexibly. Don’t set your plan for a specific date in the future. Instead, have room for a year or two. Don’t be conservative and plant some flexibility in your safety margins. That will increase your chances of success in the long term.
What mentality is best?
Gold is the only truth that never changes. Due to the fact that it has intrinsic value, it’s a choice for the optimist and the pessimist. The optimist will look for potential growth and price increases. The pessimist will think that the fiat standard will crumble and gold will be used as a medium of exchange again.
That’s why it’s important to cover both grounds. No matter which mindset seems more lucrative, it’s important to turn the odds in your favor. Choosing a side is not exclusive, and you can oscillate in your opinion. Markets always recover, and that’s why gold is the best choice.