Incredible Money Life Lessons You Can Learn From Donald Trump
Make certain that your investments are well-diversified.
When asked about his wealth during an interview, Donald Trump stated, “Money was never a significant drive for me, except as a method of keeping score.” The excitement comes from actively participating in the game.
Trump did, in fact, enjoy financial speculation, and his foray into the Atlantic City casino industry began with the opening of the Trump Plaza Hotel and Casino in the early 1980s. Later, Donald Trump used his company, Trump Hotels and Casino Resorts, to acquire a few more casinos in the area in order to expand the Trump brand.
On the other hand, he failed to take into account the cutthroat competition that existed between casinos. As a result of putting all of his resources into a single venture, he was forced to deal with the issue of his own casinos competing with one another for the same customers. As a direct consequence of this issue, Trump Hotels and Casino Resorts have sought protection under Chapter 11 of the Bankruptcy Code on four separate occasions: 1991, 2004, 2009, and 2014. (The company was rebranded as Trump Entertainment Resorts in the midst of all of these bankruptcies.)
Despite the fact that you most likely do not intend to enter the gaming industry in the near future, the lessons that you can learn from Trump’s mistakes in Atlantic City are straightforward: diversify your investments. You will reduce the likelihood of incurring financial losses as a result of the ups and downs of the market if you diversify your investment portfolio. Instead of concentrating on the most successful start-up companies or the most popular technology stocks, you should diversify your holdings.
By working with a financial advisor, you can improve your ability to “play the game” of investing, which is a common metaphor for the activity. You could also think about utilizing robo advisers such as Betterment, which make use of intricate algorithms to determine the most productive ways to allocate your money based on your age and the kinds of things you want to accomplish financially.
Establish Financial Goals That Are Achievable.
Despite the fact that Trump’s business record is littered with failures, his success is clear from what he once said: “In the end, you’re assessed not by how much you undertake, but by what you’re finally able to do.”
For example, in 1995, Trump paid $1 million for the building at 40 Wall Street, which is now one of New York City’s tallest structures. The building is now one of the most valuable properties in the city, worth more than $500 million after Trump invested approximately $35 million in renovations.
He was able to achieve this real estate goal, as well as many others, such as the construction of Trump Tower in New York City and the Trump Hotel in Las Vegas, because he devised a comprehensive strategy from the start and kept his focus on the rate of return on his investments (ROI).
Even those who do not have millions of dollars in their bank accounts can benefit from this piece of advice: set financial goals that are within your means. You can set financial goals and stick to a financial plan to make those goals a reality, whether it’s saving for a down payment on a house, regularly saving for retirement, or paying off debt in a specific timeframe. You could, for example, save for a down payment on a house. You could also save for retirement on a regular basis.
Take chances… With Thorough Investigation
Donald Trump would not have made it into the exclusive club of billionaires or become a household name if he had not consistently taken calculated risks throughout his business career. However, Trump attempted a number of business ventures that indicate he would have been better off following his own advice, which states, “Sometimes the best investments you don’t make are the ones that turn out to be the best.”
Trump Steaks, an unpopular business that was only open for 5 years and received 51 health code violations, and Trump University, which was open for only 6 years and is the defendant in a few ongoing lawsuits, are two examples of times when Donald Trump took risks without conducting extensive research on the viability of these investments. Trump Steaks was only open for 5 years and received 51 health code violations. Trump University was only open for 6 years and is the defendant in a few ongoing lawsuits. Trump Steaks was a failure that only lasted for five years and was cited for fifty-one violations of the health code. A legal dispute has been initiated against Trump University, which has only been in business for the past six years.
Take a page from Donald Trump’s playbook and learn from his errors before you invest your money by doing additional research on your own investments. This will allow you to avoid making the same mistakes that he did. Billionaires have the financial resources necessary to mitigate the negative effects of failed investments on their wealth. On the other hand, there is no reason to put yourself in danger if your retirement savings or other financial matters are in jeopardy.
You should not follow the lead of the crowds of investors who rushed to buy Nintendo stock the moment Pokémon GO was made available to the public. They didn’t realize until it was too late that Nintendo didn’t actually own the game, which led to a lot of problems. Instead, do some research on the various options available to you, read some investment newsletters or blogs, consult with a financial advisor, and don’t be afraid to take a few calculated risks with your money when it comes to your investments. It is acceptable to take risks as long as you are well-informed about both the positive and negative outcomes and have sufficient time to recover from any financial shortfalls before retiring. Taking risks can help you build wealth, but only if you do it responsibly.