Another observation of mine lately. I think it is pretty obvious but I didn't realise how important it really was. Sorry didn't mention, it is investing related. There are heaps of investments we can choose to undertake and it is unlikely to even find two people with the exact portfolios. I am not sure how I came across this but here was it goes.
I imagined this recently. Some random person who comes to me and say, what stocks should I buy? I think to myself. Should I give a few stocks I like immediately or what? There a lot of criticisms given to Rich Dad author Robert Kiyosaki, stating that he doesn't really tell people in his books what to actually do. This is true, I've read a few of his books and I don't see which stock to buy or which location should my real estate investment be. This has angered many people and thinks he is just a fraud.
For a New York bestseller for I think at least 4 years, do you actually think people will continue buying a book which is useless? Probably not. He can give answers without a doubt but he won't. He wants you to find the answers. And because everyone is different in wealth, background and even geograhic location, he shouldn't give answers because it may not work for everyone. Like him or hate him, he wants the world the be financially literate and that's his goal. Who cares if Rich Dad doesn't actually exist (only he knows that), do you care if Harry Potter actually did exist ?
So what would be my answer to that imaginary person ? This is the single most important question to anyone starting off investing. "WHAT ARE/IS YOUR FINANCIAL GOAL(S)?". If the answer is I want to be rich...then there would be the risk tolerance question and I will give some suggestions. A financial goal can be anything from" I want to reach a million dollars in net worth in 10 years", "I want to own a house fully paid by 5 years " to "I hope to retire by 45 ". How could a person possibly have a universal answer to each of these situations. The general answer of needing to do something extra is obvious, but what to actually do is different. Thats probably why I don't list a bunch of stocks to buy. It's because they won't match everyone's financial goals and risk tolerance. For people who are sitting on 5 million dollars and don't know what to do to make it last forever, you can't do the same thing as someone who is trying to get out of debt.
At any point of life, you need a financial goal just like an ordinary goal. And it behaves the same, it changes over time because things are different at different points of time. So make sure you have a financial goal and do what you can to achieve it. You will be surprised what you actually learn and achieve in the long run.
Finding your own answers is best education
~deyao~
