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It wasn’t that long ago, so most everyone probably remembers the Reddit fueled Wall Street battle for GameStop that happened earlier this year. Thanks to very large number of people trying to bump up the chain’s value, GameStop’s stock value is actually ten times higher right now than it was at the beginning of 2021. One might think this was actually a good thing for the company, having good value after the debacle that was 2020, but unfortunately, this stock increase has very little to do with the actual performance of the business. This is made pretty clear by GameStop’s fourth quarter and 2020 fiscal year results.
A growth mindset is what you must adopt when it comes to your finances. A fire spark inside of you will only fuel you with Growth two, even ten years down the road. According to a study published called "The Neuroscience of Growth Mindset and Intrinsic Motivation," it states, "growth-minded individuals perceive task setbacks as a necessary part of the learning process, and they bounce back by increasing their motivational effort." How can a growth mindset develop your ability to grow your finances or wealth? First, it will allow you to take on more risk. Do you have an extra $5,000? Try learning everything about long term wealth building. On the other hand, you could start trading stocks and options. But first, you must learn everything there is about the subject matter. Let's spin back to Bill and Charlie and see how each of them would approach building wealth.
Everyone knows of the typical asset: stocks. From hiring a financial advisor to doing it on your own investing, stocks are the specific investment vehicle for most retail investors. Have you ever thought about diversifying your investment income with other high-quality asset types? The new hype these days in the 21st century is cryptocurrency. Another great asset class are commodities such as gold or future contracts. No matter what situation you are in, diversifying your income is the primary key to substantial wealth and comfortable retirement if done correctly and strategically. In this article, I will go over other asset classes to help you build your wealth in the long term. I will also cover which asset classes to pick, depending on your risk tolerance.
Whenever there is a massive drop in the stock market, you immediately have two types of people- those who panic sell, and those who buy thinking they are investing in a big future at a very low point in the present.