Few people would dispute that Donald Trump has had many financial successes – and financial failures. We, as viewers, can learn lessons from both, to produce victories without losing sight of losses.
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Whether you love or loathe Donald Trump, take a sobering look at what we can learn from his decades in the financial world.
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Take Bold Risks Today, Make Changes Tomorrow
“He’s a self-made millionaire who worked with Trump years ago in real estate,” shared Brenda Christensen, serial entrepreneur and founder of Stellar PR. “It’s highly competitive, and it’s slow. The world got a hint of this from ‘The Apprentice’ long after I had interacted with him.
“Everybody in that sector, especially Trump, is aggressive about investments. My experience working with him is that he’s a risk taker.”
After all, Fortune favors the brave – Trump won hundreds of millions by stepping forward while others fled. But bold risks sometimes come back to bite.
Christensen said: “It’s no wonder he went into the gaming business, opened a casino and eventually filed for bankruptcy for debt restructuring.
Calculated risks often pay off, and you can implement Plan B tomorrow if the wind turns against you.
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Usage works, but it cuts both ways
In business and investing, you can use other people’s money and time to increase your profits and income.
Anthony Termini, a seasoned investment advisor and contributor to Annuity.org, has seen this play out over and over again, and points to Trump as an extreme example of rewards and risks. “Trump has used his real estate projects to the max – most of them successful. However, his overspending led to at least six problems .”
Communicate with Power – or Its Appearance
Christensen noted that Trump actually communicates better than anyone else. He knows how to project power, a quality that later made him popular with many voters.
“I’ve worked with titans like Mark Cuban, Bill Gates and others, and nobody, and I mean no one, it comes close to his knowledge of ‘the art of agreement,’” he explained. “He was born in the crucible of real estate, which is even more competitive than technology.”
Find ways to fix your problems when you go into an interview, and double-click on your advantages. Above all, never hesitate to walk away if you don’t like the direction the conversation is taking.
Never underestimate the power of knowledge in an interview.
In Business and Investment, Knowledge Rules Everything
Indeed, money is good. But it’s just a tool, and it only works as well as the person holding it.
Long before he became a controversial political figure, Trump swam in the shark-infested waters of finance, private equity and real estate. “To make more money, knowledge is more important than anything else, including money itself,” Trump tweeted in 2013.
Don’t invest in anything you don’t understand. Don’t make important business decisions without first gathering the information you need. Act from a position of knowledge and expertise, and if you don’t have it, find people to help inform your decisions.
Book Low-Risk Investments First
Yes, Trump took bold risks in his real estate business. But they were always calculated risks, and Trump weighed potential losses before potential gains.
“How much money can you lose? That’s how much you should think about risk,” Trump wrote in his 2005 book, “Trump: Think Like a Billionaire: Everything You Need to Know About Success, Real Estate, and Life. “If you can’t afford to lose it, play it safe.
Think in Decades and Generations, Not Months and Years
Termini puts it clearly: “The first financial lesson from Donald Trump is that the best way to get rich in America is to get rich.” Trump inherited more than $400 million from his father and was the beneficiary of his grandmother’s trust, which made him a millionaire at the age of eight.” (Note that the numbers (that’s from a 2018 New York Times article, and Trump himself tells a different story.)
Regardless of how much Trump received from his father and grandmother, you can look at his legacy through two different lenses. Through a cynical lens, you can mock and dismiss any success Trump has ever achieved.
Through a more inquisitive lens, you can learn a lesson about productive wealth. The wise among the rich plan not only their own success, but that of their children, grandchildren and more.
Start with a simple question: How much time do I spend on my financial plan? Financially unstable and skilled people live hand to hand. Others continue to live on a monthly budget, then make annual financial plans, and then make long-term plans such as retirement and their children’s education.
The smartest innovators raise their children not only with financial literacy but wealth literacy – and with family assets to create productive wealth.
Final Thoughts
Brian Meiggs, the founder of My Millennial Guide, sets out to take a closer look at a man who many despise or demonize.
He said: “Donald Trump’s financial policies and bold investments have often produced many benefits, highlighting the benefits of taking risks and using good strategies.” “However, his high-profile inaction and legal problems highlight the importance of diversification and careful financial planning.
“From Trump’s experiences, we can learn to balance ambition carefully, to ensure that our financial decisions are well-informed and stable against uncertainty.”
Editor’s note on polling news: GOBankingRates is non-partisan and strives to accurately cover all aspects of the economy and produce balanced reports on politically charged financial stories. You can find more information on this topic at GOBankingRates.com.
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This article appeared on GOBankingRates.com: What Can Trump’s Financial Actions Teach You About Your Finances?
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