“An investment in knowledge pays the best interest.” — Benjamin Franklin
What’s a good investment to you? What has to be involved in an opportunity for you to consider it a great investment?
Everyone’s always looking for a great investment. We work hard for our money. Why not let our money work for us? Many of my new readers or friends on Facebook will ask me about great investments and where they should be putting their money. I can never give a single answer because there’s so many factors involved. How much money are you willing to risk? What do you know? What are you into?
Today I wanted to look at the criteria involved in every investment.
What goes into a great investment?
“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” — Warren Buffett
How much do you have to risk? What’s the risk to reward ratio? Some investments have the opportunity to double your money or make you very wealthy, but they come with plenty of risk. Other investments come with almost no risk involved, but don’t yield you any decent results.
I take all sorts of risks in my personal and social life. I try to do outrageous things. I approach strangers. I go on trips alone. I say things I shouldn’t. When it comes to money, I’m very cautious. I know what it’s like to be poor and I don’t want to lose my money.
In my opinion, I want to take risks that I can control. I invest my money into myself and my skills because I know that I can control things to an extent. I got out of the stock market because I didn’t like the feeling of not being in control. But, that’s just me and many of you guys are making a killing on the stock market.
Will this investment come with any sort of experience?
The risk of spending four years (or more) in college and borrowing thousands of dollars for a piece of paper comes with an experience. You can live on your own for a few years. You can transition into adulthood. You can meet all sorts of interesting characters, meet your future life-partner, learn about yourself, and figure out what you want to do next.
Investing in stocks come with the experience on learning about the industry, studying market trends, and figuring out your own level of greed.
Every single investment comes with a unique experience. Is this experience worth it to you? I’ve spent thousands of dollars on trips that were considered an investment and yet I could never put a value on them because I learned so much and built valuable connections.
What can you get out of this chance?
Most investments come with a monetary reward. A college degree comes with the reward of earning the job that you wanted. Investing in stocks comes with the reward of the price appreciating and you earning a profit. Attending a conference comes with the prize of learning and accelerating your growth. You can see where I’m going with this.
What reward can you earn for this investment? Is it worth the risk to you?
The reward you get from college can be totally valuable to some and worthless to others. The reward of attending a conference can lead to one attendee growing their business while another attendee leaves frustrated. Rewards vary and are never 100% guaranteed.
Those are my random thoughts on investments. I’m sure that you guys have all sorts of exciting and perhaps sad stories of past investments. I just want you to think about the risk involved, the possible experiences, and the reward.
“I’m only rich because I know when I’m wrong…I basically have survived by recognizing my mistakes.” — George Soros
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