Here’s How You Can Get Rich Without Doing Anything

Wealth creation techniques are as simple as they come. as consistent as possible. From ‘Buy Right, Sit Tight’ to ‘Fill, Shut It, Forget It’ the list goes on. One theme is omnipresent – ​​do nothing. Do nothing and become rich with your wildest dreams. The world must be crazy. How does that even work? Well, this is how it works – Equity markets are volatile in the short term, but they will move upwards over time. Doing nothing for 25 years can make you very rich. Of course, you should invest first, and regularly, there’s no way around it. They don’t tell you that doing nothing in the long run isn’t easy. Data shows that over 50% of HNI (high net worth individuals) investors (above.) ₹2 lakh), unable to stay invested even for two years. Why?

The investment journey can be an emotional roller-coaster. And what goes up and down, sideways and backwards, in loops and hoops is worth your money. Luck isn’t doing anything. When the market goes up, investors make money. And when the market goes up, we make even more money. FOMO and collective greed can drive the markets to a level where everyone around you is making a handful of money. The thing we hate as humans more than anything else in the world is losing money. A 5-10% drop in market levels can be handled by our own experience and advisors. But one must also understand that the markets fall by more than 20% every few years. How do emotional humans prepare for that?

Anyone who has gone through a market crash has seen worry, despair, fear and panic as money starts to disappear, and losses start to mount. You react during these moments in a way that defines what your return will be; Exactly what kind of investor are you? And it’s important to recognize that different people react to loss differently. That’s all we are. Many people will panic to see their wealth shrink, while some may remain more Zen-like. In all walks of life, when things around us begin to look bleak, our minds can entertain doomsday predictions. During this time, experience, common sense, belief in one’s plan, everything can leave us. Mental toughness is required. Can you stick to your plan even in the darkest of times? Do you have any plan too?

Experienced investors value the support of advisors to help them become more disciplined, thus successful investors. Another way to deal with emotional instability is to forget it! Don’t look at the markets every day, silence the noise and put it in a safe. If you have no clue what’s going on outside, it can improve your chances of staying invested and making money. Alas, the proliferation of technology and social media, smart devices that are an extension of ourselves, the world simply doesn’t let us relax. Access to information is a double-edged sword.

An alternative approach that helps manage emotions is the adoption of smart beta and rules-based risk management techniques. Philosophy has its roots in probabilities and data and eliminates the practical aspect with respect to decision making. Mass adoption by savvy investors is just a matter of time.

In the end, long-term investing is like an elite game. In the end, the game is played between your ears. Making significant money is not easy, it takes time. It requires strong mental skills. And having a good support team can add obvious value. But first and foremost, it requires you to start. Which remains the hardest part for most people.

Starting early can give you life’s most valuable asset, time. This is the hallmark of all successful investors. The challenge is that as young adults, our relationship with money is very basic. We love money, but fail to appreciate that money doesn’t love us back. That money has no feeling or emotion, it only works when you put it to work, otherwise it rots. There must be an urgency to invest. This is the best a current investor can give himself.

Kushal Bhagi is the Director and Co-Founder of Tortuga Wealth Managers Pvt Ltd. Ltd.