"You're only given a little spark of madness. You mustn't lose it"
-Robin Williams
Investing is a topic that often gets lost on translation. The term is misunderstood or used in different contexts that connote slightly different meanings. To simplify it, an investment is time, energy, or matter spent in the hope of future benefits actualized within a specified date or time frame. In my opinion, the best investments are the ones you make in yourself.
One of the best investments I made was going to school to get a master’s degree in business finance. Today education is extremely pricey, but despite the high price tag the education you receive will last a lifetime and qualify you for much higher paying jobs. Educating yourself in finance, technology or other useful skill sets is generally always a good investment. The skills you learn won't disappear like a stock with poor earnings. These skills stay with you and will allow you to apply them to every venture for the rest of your life. Personally, my income has doubled since I received a master degree and the return on investment is close to 70% annually.
A good friend of mine has an MBA and today he is considering getting an additional master's degree in computer science. By acquiring computer programming and data base skills he could substantially increase his income by applying these skills to the data analytic industry. Of course, educations does not guarantee you success. A degree can easily be wasted if you don't apply your skills appropriately in real world.
I helped my wife invest in acquiring the skills to be a Pilate’s instructor three years ago. Despite the initial cost of the program, she is now making a 100% return on the initial cost every month being a full time instructor. By using your new found knowledge and skill set to your advantage, investing in an education can yield the best returns.
In the 1990's a newly minted millionaire named Mark Cuban spent over $100k on a lifetime first class ticket from American Airlines. This may seem like an extravagant expense up front, but Mr. Cuban was able to travel the world on his first class ticket networking and visiting cultures the world over. He used it almost weekly. You see, Mr. Cuban wasn't just spending money; he was investing in himself and his own personal growth. It's hard to quantify your personal gains from traveling, but you'll know what you've gained after the experience. Today, Mr. Cuban is a billionaire and owns his own private jet. He claims his traveling experience was one of the most rewarding things he has ever spent money on.
It is possible to obtain citizenship and a passport from another country. As Simon Black says, "We don’t get to control where we’re born. It’s a fluke really. Yet as soon as we come into this world a particular nationality is thrust upon us like a birthmark that stays with us for life. By investing in a second passport the benefits can be lifesaving. Our nationality dictates so many things throughout our life. It might mean that we’re required to serve in the military and fight and die in some foreign land at the behest of an out of touch politician. It might mean that we’re required to pay an ever increasing portion of our income to finance government largess that we don’t agree with at all. It can also substantially restrict the places we can go and travel in this world." By investing the time and money in getting a second passport you open yourself to more options to travel, work, and a lifetime of opportunities.
Of course, putting some money into long term financial investments will serve you well over your lifetime. Long term investments will help your money grow or retain purchasing power. Money is important and without a doubt you will need more of it as you grow older. The idea is to create a stable financial future that will allow you to act on future opportunities as they arise.
Let's be clear, short term trading of securities is risky and almost equivalent to gambling. You can get lucky once in awhile, but most people lose money in the long run conducting short term trading. Gambling in Las Vegas or Macau is not an investment either. The odds are stacked against you. It is a sure bet you will lose money. Buying fancy clothes and materialistic items does not qualify as an investment because they depreciate in value once you take them off the rack. All these things don't benefit you in the long run.
There are plenty of things that do qualify as investments, but it is the investments that reward you with new options and opportunities that compound the fastest. This is something that shouldn't ever get lost in translation.
Sincerely,
T. Norman
