38-yr-old retired millionaire shares 5 investing rules to build a 7-figure portfolio

Akanksha JainJul 4, 2017, 17:00 IST

Becoming rich is a mix of several steps. From right investments to smart moves, making money is all about smart work and dedication.

Many people have turned millionaires and billionaires by investing intelligently and creating a system. They have to build strong mental attitude and took several risks in order to reach their financial goals.

Chris Reining, who became financially independent and a millionaire at the age of 35 and retired at 37, said you have to make a choice-either continue with daily grind or take a step towards your goals.

In his blog post, Chris said it takes only three things to realise what you want from life-Introspection, Discipline and Confidence. Once you are in the flow, your targets will be met.

For those of you who want to achieve their financial goals, Chris has talked about 5 investing rules from building a seven figure portfolio.

“And I think part of writing your own story is having more money because having more money means having more options. And the best way to have more money is to invest. Now that I’ve been doing that for over a decade I’ve learned a few things,” Chris wrote.

Read through them and inch towards becoming a millionaire

See 38-yr-old retired millionaire shares 5 investing rules to build a 7-figure portfolio >>

1. Create a system

When you build a system by automating your personal finances, it means you’re not wasting your time and energy moving money around and making decisions because all the decisions have already been made for you. And part of this system is automating your investments. If we assume an annual market return of 7%, a 25-year-old who automatically sends $10 a day to their investment account can have $270,000 by age 50.

2. Ignore market predictions:

With investing there’s a lot of people making forecasts and predictions. But here’s a simple way to convince yourself these people are guessing: Read last year’s predictions.

3. Really, do nothing:

For everything we do in life when we’re working really hard it eventually pay offs. This is why being successful at investing is so counterintuitive. Because when you’re working really hard at it by tinkering and tweaking and adjusting your investments what you’re really doing is destroying your future wealth. Why do investors do so poorly? Because they’re tinkering and tweaking and adjusting. So, if you want to be better than the average investor it means doing something that most people can’t do, and that means putting up with years and decades of doing absolutely nothing.

4. Outsmart markets:

Just by choosing investments with low fees you save $100,000 and when you’re saving $100,000 it means having $100,000 more for your future.

5. Deactivate your emotions:

Behavioural biases are the biggest reason investors fail at investing. The best method is meditation. What it’s really about is building a strong mental attitude because when you have a strong mental attitude you’re less likely to make emotional decisions.

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