Why we earn money? Many people say I want to be happy by buying those things which I need for myself or for my loved ones.
You are right in some circumstances. But to become rich, buying all your needs is not the importance of money. But you have to use the money to become independent from everything.
So you will ask how? Here we are providing you three ways how you have to use the money to increase your net worth with time.
We saw many people who invest their money in various stocks or bonds or other sources. But when they get some profit, they just run away from the Market. They don’t know the power of compounding. Suppose you earn 66 percent of the money as an interest of the money you invest. After this, you most probably leave the market. But suppose your friend gets 22 percent of interest what money he invested, but he did not run. He invests money consistently. After some time he will get more returns than you.
Here you have to understand the power of compounding. So use this strategy consistently to get success in the market.
Volatility means daily up and down Swing in the market. Here people who are emotionally weak just run away from the Market but they don’t know if they avoid this emotion and remain in the market for a long then during this term they will get more profit.
Here you have to take volatility as a fine or fee that you have to pay for getting more profit for the long term. So use volatility as an opportunity and invest money according to the best you can do.
This approach teaches you how you are investing money, not in only single stock or cryptocurrency or any other, but to invest your money into different others. It teaches you how you will diversify your money in different financial markets.
You don’t know which investment will remain profitable income and you can lose also. But by diversifying your money in the investment you will increase your profit for the long term.
So understand the psychology of money and use the above strategies to invest your money. It will mostly help you to get what you want from the market in long term.