Some think their car is an investment.
Some think of their house.
Some, their education.
Everyone thinks about Stocks and Bonds
They are wrong almost all the time.
What Is and Isn't an Investment
Perhaps one could consider a car an investment if it’s the only way to get to work. Beyond that, no. A car is definitely a luxury. Even a car needed for work should be considered a necessity, not an investment.
The same goes for your house. It’s something you need. Having a mortgage is an asset for the bank, and therefore a liability for you.
Education is murky.
Depending on your major, it’s more like a foundation that might possibly get you either a job or opportunities to utilize later. Its more like a foundation for possible options later. And it turns out, this foundation can be quite shaky and unreliable. Not really what you're looking for when you are shopping for foundations.
Some people think stocks and bonds, they must truly be what investing is. It could be for sure. But for the uneducated masses, it’s more like gambling. Or just a glorified bank.
Real Investing?
Imagine investing in something you actually understand. Somewhere where your money makes a tangible difference in the outcome in a project. You are not just one of a 100,000. Why should one care about these things? What we care about is safeguarding our money, and making it grow.
Investing where your money is truly needed means that the reward will be far greater. So many are satisfied with 4% or 5% yearly return. Those who just want to follow the stock market might hope for a whopping 10% for the long haul. Of course, the road will be quite rocky in the short term. But there are other options.
Picture this: Investing money into assets that increase in value every year and put liquid cash in your pocket every month or quarter. Yes this is having your cake and eating it too. But think about it, isn’t this how all businesses work? If you spend capital to open a coffee shop, then you will soon expect to make a profit every month AND you have an asset, a business that increases in value every year, rising both by your improvement and by inflation itself. Then one day you can sell it, thereby getting back your initial capital, plus all the value you created, plus the inflation that has inflated your asset.
Why People Don't Know About This
Cash flow, plus exit. Settle for nothing less. So how?? These opportunities are harder to find simply because financial advisors don’t get a commission when you invest in them. Also these opportunities are usually smaller therefore, one can’t spread the word far and wide. Additionally many are only for “accredited investors” (simply those who have a high salary or have a higher net worth).
One must look for, scour, and find opportunities! Join a local club of investors. Partner with someone hardworking, skilled and hungry for success. Maybe they are a fix and flipper. Maybe they are opening a brewery. You could simply start acquiring smaller condos and houses.
You can invest in apartments, or commercial buildings, become a part owner and get all the cash flow, equity building, and tax benefits that come along with it.
In any case, develop an eye for opportunity, invest where your money is needed, and don’t settle for absolutely anything less than 10%.
Comments