Investing in Economic Uncertainty
An investment is any activity where you put your capital working for you through a return on that capital.
Usually, this means an initial expenditure for a later return.
Now, remember that money is capital, but there are other forms of capital: your personal network, skills, knowledge, and experience are also capital if they can generate wealth.
During times of growth, like the past decade, the economy is booming, wealth is being generated everywhere, and plenty of investment opportunities exist. But what happens when the economy starts to slow down? People are consuming less, and less wealth is generated. Finding attractive investment opportunities becomes challenging.
When this happens, investing in yourself is one of your best choices.
But how to do it?
Begin with the end in mind.
You ask yourself, “What do I want out of this?”. This newsletter is about investment, and I will assume the end goal is generating wealth, i.e., money.
It is essential to get specific on the what, not merely “I want more money.”
"Here’s a dollar. Now get out." Tony Robbins
Know that whatever you set your mind to, you can achieve. It doesn’t matter if it’s a million or a small raise. Whatever you choose as a goal, make it worthwhile your time.
You do this by remembering there is a deeper reason, and that’s for you to figure out.
Why do you want wealth?
Be crystl clear, no fluff, and most importantly, don’t lie to yourself! There are no right or wrong answers as long as you’re truthful.
Do you want the latest sports car? Great!
Do you want to give more? Fantastic!
Do you want generational wealth? Cool!
No answer is better than the other. It’s just a realization of why YOU want more wealth. We don’t get things done when we choose a reason to impress others, which is not our reason.
I invite you to be honest and truthful to yourself. Always.
Now you can ask yourself:
What will this provide me?
How will that make me feel?
Who will I become?
What does that mean to me?
This is just a framework to help us understand what drives us, and we need to remember our why when the going gets tough.
The what gets us going, but the why keeps us moving.
Investment…
If your investment is not generating wealth, it’s not an investment. It’s an expenditure. Sorry.
You are likely speculating if you expect a return without paying the price of success. The lesson will be painful and costly. Sorry.
Choosing your vehicle.
There are infinite ways to invest in yourself. Make sure that whatever you choose will generate wealth.
Are you trying to figure out how to choose? Let me know in the comments below if you want me to share a decision-making process.
When investing in yourself you should increase your network, skills, knowledge, experience, or a combination of any or all of these aspects.
Some examples are:
a good coach
a mastermind
a course
a new job
joining a community
a hobby
Know that a price will be paid in cash, time, or any other sacrifice. This is the time to remember your why while ensuring you get more than you pay for. This is what makes it an investment.
Another important aspect is ensuring you take action with whatever you gain because action is the money-making machine. When investing in ourselves, we provide tools for us to act upon.
My favorite part of this investment type is the zero-loss risk. No one can take your knowledge, skills, network, or experience away from you.
Zero loss risk, infinite returns. Seems like a no-brainer. What’s stopping you?
Please let me know in the comments below, and I’d love to provide some help if I can.
Peace and Goodness my friend,
