Unless you’re living under a rock, you’d know about the extraordinary investor frenzy that’s going on in India (and probably in most countries of the world).
Stock markets are at an all-time high.
Crypto trading startups are raising millions because people investing in cryptocurrencies are growing by leaps and bounds every day.
Overall, the risk appetite of the financially-conservative Indian seems to have suddenly grown in the past two years due to multiple factors and majority of such people are jumping onto the bandwagons that they don’t fully understand or have researched deeply about.
Economic factors aside, I have no doubt that Fear of Missing Out (FOMO) and making big money quickly is driving a lot of this behaviour. I was talking to a friend the other day who innocuously mentioned that how else would he become rich if he doesn’t invest most of his spare income in these vehicles.
It’s amazing how people have started treating crypto and stock market investment as their main source of (future) riches when they should be the sideshow. Here’s the hard truth: barring a few exceptions, you don’t become rich by investing. You might become richer by investing.
The only ways to make it big are #1. Make something people want or #2. Work for people who’re making something that people want (and help them grow it enormously). That’s how people get rich.
Focus on the long game and treat your investments as the sideshow, not the main thing. And please, don’t lose money.