By Joel Salomon
Have you ever wondered what the secrets to having more money are?
Write this acronym down BIG. B stands for Beliefs. I stands for Intuition. G stands for Giving.
Let’s start with Beliefs. Beliefs are crucial in every investment decision you make. Why? Once you start to doubt if you are going to make money, you will never make money.
Do you believe money comes easily and frequently? Do you believe you have to work hard to be rich and successful? Thinking about how these beliefs can positively or negatively impact your life.
As a prosperity coach, I tell my clients to write down their belief level for each investment idea. 1 is massive doubt. ‘That’s really, really risky’ or ‘Can’t I lose all my money in that investment?’ And 10 is absolute faith. ‘I that I am going to make tons of money in this investment.’
Let me give you an example: on November 27th, 2017, two men buy Bitcoin at $8,000. The first man has been researching for a year and decided it was an awesome investment opportunity. He’s a “10.” The second man got a tip from a friend. He buys 1 Bitcoin though he has massive doubt; he is a 1. Three days later Bitcoin is worth $10,000. The first man is so happy. “I told you it was going higher,” he says. The second guy says “I hope it doesn’t go back down.”
A few days later bitcoin is back at $8,000. The first guy doubles down and buys more. He says “This is the best buying opportunity out there.” The second guys sells! He is worried and knows this is risky and complete speculation. He is so happy he broke even.
Less than 3 weeks later, bitcoin hits its all-time high of $19,000. The guy who KNEW he was going to make money sells. He made almost 250% in less than one month. The second guy has no idea where bitcoin is trading. He is worried about losing money elsewhere.
What is the belief level that you are going to make or lose money in each investment idea you own or have?
I stands for Intuition. No one ever talks about this with regards to investing. But I will tell you that as a hedge fund manager from 2008 to 2016 whenever I didn’t trust my gut or intuition, I either lost money or made less money than if I had trusted it. I teach people how to develop their intuition. Intuition is like a muscle: you have to exercise it to make it stronger.
How do you exercise it? When you are on the subway platform and there is a local train at the platform but an express is coming. Use your intuition to decide which one to take.
Every Thursday morning, I take my daughters to school and I am presented with options. I can take the highway, back roads, or we can hitchhike. Usually, my intuition says highway. One day, there was tons of traffic on the highway. I used my intellect and I didn’t TRUST MY INTUITION. I took the backroads, looked in the rearview mirror and my heart began pounding when I saw the flashing lights and heard the siren. Not using my intuition cost me $150 in speeding fines! My daughters still tease me about this to this day calling me ‘Speedy Pants!’
Let me give you an investment example using intuition. In 2008, we had shorted AIG—bet that the stock was going to go down. AIG had large exposure to the financial crisis but we had no idea it was going to be bailed out by the US Government. We started shorting it in March and in May when they announced they were raising money my gut or intuition was telling me to hold on. But the stock had already fallen from $80 to $50 and my analyst convinced me to get out. We did and two days later it was at $45–down 10%—in just two days! We shorted it again at $45 and held on until it was $12. It was a gain of about 60% as I trusted my intuition.
And finally, G stands for Giving. No investor will ever talk about this, but it is probably the most powerful way to become financially free. Giving creates Karma. You reap what you sow!
Sir. John Templeton, considered by some to be the world’s greatest investor, said that he didn’t know anyone who gave 10% of what he earned to charities over a 10-year period who didn’t massively grow his financial wealth.
Now, some of you may be thinking. What? If I give my money away, I will have less money. How does this all work? Well, let me explain something. Money is energy and the more you give, the more you open yourself up to receive. The more you give, the more you create a belief in your ability to receive more.
By giving as little as 10%, you are creating the belief that you are abundant, worthy and there is more than enough to go around.
And giving doesn’t have to be just money. You can give your time to those in need, you have a unique gift or talent, share it with the world. You could give a smile, compliment a stranger or you give a speech at your Toastmasters club.
Jim Rohn, an American entrepreneur, once said, “Only by Giving are you are able to receive more than you already have.”
I can tell you when I started a giving program to the Food Bank of NYC and started doing five nice things a day, the amount of abundance that came into my life was unparalleled.
Giving can indeed change the world.
If you use my three tips, I am sure you will see an increase in your financial wealth. So, remember think “BIG!”