If you are resourceful and hard working, the very best investment you can make is to invest in yourself.
If you are under 50 and have less than $10 million in assets, you should spend less than a few hours a year on what people traditionally call “investing” in hard assets (on things like stocks, bonds, real estate, angel investing, etc.).
Even if the more time you spend is directly correlated with getting a better return on your hard assets, your assets likely will not grow fast enough to be worth your effort. This is especially true if your goal is build real wealth. If you have spare cash, I would advise investing it in the safest thing possible so you don't lose it and concentrating your time on investing in yourself (so you can grow your revenues long-term).
Growing your portfolio an extra 2-3% a year, while nice, likely does not compare with the exponential growth you can achieve by making investments in your soft assets. The younger you are, the better an investment in yourself is because it can grow over a longer time horizon.
You can also buy time. Since time is the scarcest resource for most people, spending at least some of your hard-earned dollars on getting you more time will go a long way. If you can avoid it, try not to drive to work. Also: try to stop doing the things you absolutely hate to do. If you invest the saved time in your career or your personal happiness, it will likely yield a better long-term return than the stock market.
And while What You Know is now more important thank Who You Know [http://www.quora.com/In-
And, of course, invest in your health and your emotional well being — so you can be around to enjoy the fruits of your investment.
If you are under 50 and have less than $10 million in assets, you should spend less than a few hours a year on what people traditionally call “investing” in hard assets (on things like stocks, bonds, real estate, angel investing, etc.).
Even if the more time you spend is directly correlated with getting a better return on your hard assets, your assets likely will not grow fast enough to be worth your effort. This is especially true if your goal is build real wealth. If you have spare cash, I would advise investing it in the safest thing possible so you don't lose it and concentrating your time on investing in yourself (so you can grow your revenues long-term).
Growing your portfolio an extra 2-3% a year, while nice, likely does not compare with the exponential growth you can achieve by making investments in your soft assets. The younger you are, the better an investment in yourself is because it can grow over a longer time horizon.
Investing in your education continually to get educated and investing your time (your rarest resource) in education, training, and growth. This can be done by reading (and yes, reading this counts) and putting yourself in situations where you learn. You need to prioritize learning and building skills as this will significantly increase your value over time.
You can also buy time. Since time is the scarcest resource for most people, spending at least some of your hard-earned dollars on getting you more time will go a long way. If you can avoid it, try not to drive to work. Also: try to stop doing the things you absolutely hate to do. If you invest the saved time in your career or your personal happiness, it will likely yield a better long-term return than the stock market.
And while What You Know is now more important thank Who You Know [http://www.quora.com/In-
And, of course, invest in your health and your emotional well being — so you can be around to enjoy the fruits of your investment.
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