Following the Crowd When Handling Your Investments: Smart or Crazy?

If you’ve been reading this blog for a while you’ll know the importance we place on getting your investments in order. If you don’t invest you won’t have any cash put by for future needs. Furthermore you won’t be able to earn any additional cash on your investments, because you won’t have any cash invested in the first place.

But let’s get onto a different tack here. If you are investing, or thinking about doing so, how should you do it? Should you follow what the masses do or you should try something different?

Could you become a millionaire?

There are reasons why few people in the world will ever become millionaires, let alone billionaires. The main reason is most people follow the herd: they do what everyone else does. They get a job and earn what they can, eventually moving up the ladder a little in the process. They might also invest some of what they have, but it will be a fraction of what the richest people will be able to invest and earn from.

If you really want to make some serious cash you have to do something different. Everyone – without exception – who is a millionaire or better has broken away from the herd and done something different. You’ll find they are virtually all business owners, as opposed to working for someone else. This is a very important fact to consider when it comes to the way you work. No one ever gets rich or generates plenty of cash for investments through working for other people.

Finding different ways to invest

Obviously the more you can invest the more money you will amass over time. However there is more to consider than this. You’ll generally find that rich people don’t have too many regular savings accounts or other popular savings vehicles the rest of the world uses. Instead they’ll have different investments.

For example instead of sinking money into a savings account they’ve got enough to sink into a business. The returns from a business can often be much better than the returns from any kind of investment account. Indeed there is really no ceiling on what you could earn in this way.

Points to think about

Put simply, if you follow the crowd you will only achieve as much as the rest of the crowd does. However if you follow your own path – or at least follow the path carved out by other successful investors – you can do something different.

There is a saying that goes something like this: “If you do what you have always done, you will only get what you have always got.” You may understand this a little better now you have read this article, because it does explain how certain people invest a lot more sizeably and successfully than others. Once you discover more about the differences between the two types of people, you’ll know how to upgrade to become more successful with your own investments.