The Laws of Wealth

Why read The Laws of Wealth?

If you’re looking to understand, why people spend money, The Laws of Wealth covers, the emotions behind their decisions.

Learn to make better investing decisions by uncovering your limitations.

Learn your limitations

Behavioral risk is something that we must understand when gauging our ability to make good investments.

You are not rational, you have bias when it comes to making decisions, and often, may utter some intellectual or spiritual words, to make yourself seem rational to others.

We easily get overwhelmed with information and that makes it harder to make the right decision.

You overestimate your abilities to in life and in investing

You have an overconfidence bias you believe your far more superior that what you actually are.

For example, both in an outside of the gym, at lot of guys think they are in equivocal shape, and just as strong as I am.

Now  thats not to say that there aren’t strong guys out there, but the chances of someone who has the same physique as me simply doesn’t happen very often.

Now it has and will,  happen, but the guys I see in better shape than me or stronger than me, see me as stronger than them.

Perhaps, because they are more humble, they are willing to put in the work to rather than overestimating their ability to get things done.

However the guys who think they are in similar shape, as me if they decide they for some reason have more work to do physique wise, will then say it will only take them two weeks or some short impossible time frame to get to my level.

The issue with this is that it is simply not but overconfidence, doesn’t simply stop about being a bro, talking macho and acting alpha.

It is present in your everyday ability to make decisions.

Overconfidence will hinder you useless, because your ability to make good decisions suffer greatly from your inability to make accurate judgements about the various aspects of your life.

Emotions effect your ability to invest and make good decisions

The more emotional you are the easier it to get you to  make poor decisions. Car salesman, understand the laws of wealth, and they know their best sales, will come from targeting emotional buyers.

The laws of wealth, in this case is being broken by the car salesman.

The parent stressed by the emotional self conscious teen, will be an easy target for the salesman. The husband or wife, being hounded by their spouse, will also be more likely to make bad decisions as well.

Likewise, the person who is emotional because of a promotion at work, or they may have fallen into some large sum of money will also make irrational purchasing decisions.

The Laws of Wealth dictates getting a good advisor is a must

If you spend, money without consciously thinking or don’t do research into finding a good investor, you will be no further ahead than when  you began.

I use an advisor, only because when I ask questions, I get my soul crushed if my investments decisions, are not wise.

However, a lot of investors out there, are yes men, and will take your money and not give you any practical help or advice in terms of investing.

How to find out if a company is dodgy

The main stay in terms of what I consider dodgy, is pretty straightforward.

Does the company make it seem like they are making money hand over fist, without much effort.

OR do they make it seem as if they can radically increase your profits, without much work outside of needing all your money.

Basically anything that is too good to be true, is just that.

Fnal summary

The Laws of Wealth is pretty straight forward, I suggest reading it just to get your head wrapped around making good decisions, when investing.