Financial Perception

Everything Is Not Always As It Seems

Ever heard the saying ‘x% of businesses go broke in 5 years’? This would indicate that the remainder are profitable. This is not necessarily so as most businesses battle just to remain operating. Perceptions are not always what they seem and we humans tend to be optimistic in nature and foolishly embark on activities that are not always what they seem.

People Will Believe Whatever They Want

People stick to their beliefs and it takes a lot of effort to change them. Many are untrusting of others, which instinctively is a survival mechanism. People are also weary of advice as most likely they had parents telling them what to do against their own wishes. So you and I are stuck in our ways unless we make the choice to enlarge our knowledge by choosing to learn more. This out of the box thinking is what separates a successful investor from the rest of the crowd.

Know and Use Reality

So do you think all property returns a profit? In my experience some properties perform well and many don’t. Knowing what class of property provides returns and which are potential money pits is where the real skill of investing is, and this goes for all assets and investments. Researching and devising parameters to guide your choices takes time and should involve experts, but don’t always think that someone who gives you advice does it for nothing.

Ultimately Experience Teaches All

If you choose not to reasearch an investment properly you will still have your poor investment experiences to remind you you can do better. Poor outcomes are a harsh reminder that everything was not quite right. Those willing to make the effort use a combination of: