“I’m debating where I should put my money. I’m looking for the best investment.”
I’ve had this conversation countless times with friends who know that I write about personal finance. The goal for most people seems to be to make the most money in the least amount of time with the least amount of risk.
You likely know deep down that this isn’t possible. We all just kind of want to get the best results in life without taking too many risks. I wanted to share my best investments with you today so that you know where to start.
At this point you may or may not be expecting some sort of emotional story of how I got started with investing. The truth is that I was always a greedy kid who just wanted to have lots of money without working hard. I won’t lecture you about hard work or chasing your passions or any of that stuff. I’m not into that scene.
You don’t have to do what sets your soul on fire. You don’t have to be passionate. You don’t have to risk everything that you have on a long shot. You just need to know your strengths and find investments that work for you.
What’s my investment theory?
“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” — Robert G. Allen
I read every investment book that I could get my hands on when I was 17. I spent ten years researching this stuff. I still have plenty to learn on this topic. I’m happy with the investments that I’ve made. I’ve never lived in a van nor did I gamble my life savings on some stock pick from a drunk uncle at a family function.
What’s my investing philosophy?
My theory is to work with my strengths.
I know what I’m capable of. I know what I’m not good at.
In the perfect world you would work on your weaknesses. In the real world, you have to go with your strengths.
Use money that you have.
Do you have the money in the bank? While I’ve tested out complex investment strategies where I borrow money to make money. I wouldn’t suggest that you start off with this. I try to only use money that I have in the bank. I couldn’t handle the stress of borrowing money to invest in something.
If you’re not sure on how to save up then check out these two exclusive theories:
Study everything possible about this investment.
It’s important to know what you’re getting into. With the internet, it’s so easy to research any topic. I read every possible article on real estate before I made a decision. You work hard for your money so it’s important that you protect it.
Think of the long-term.
- Prices will fluctuate.
- Not every investment will pay off tomorrow.
- Sometimes you have to be patient even when you don’t want to be.
The most annoying thing about investing your money to make more money is that you have to wait to see results.
This is why most regular people don’t get into investing or they spend decades talking about investments that they want to get into. The average person can’t handle the wait to cash in.
It’s all about the long game with daily effort. A little bit of effort on a daily basis can go a long way .
Find a way to make money in your sleep.
You have to make money in your sleep if you want to get ahead. There are only so many hours that you can work in a day. It’s important to me that I find ways to grow my savings while I’m snoozing away.
What are my best investments?
Here are my top three investments (in no order):
#1: Real estate.
The real estate debate is never-ending in the personal finance community. Your primary residence isn’t the best investment due to the challenges of home ownerships (multiple expenses, things breaking down, taxes, and so on).
However, if you buy a home in the right community and find great tenants you can make decent money in the long run from a rental property or your home.
I bought a pre-construction condo and sold it for a huge profit after a few years. This pay day helped me fund other investments that really got the ball rolling for me in life.
There are plenty of things that could go wrong with real estate. I’ve been lucky to come out on top (that’s what she said!).
Read up on my top real estate posts:
Real estate isn’t for everyone. I’ve had my fair share of challenges.
#2: My career.
“Your best investment is in yourself.”
This seems like a corny quote. It’s the truth though. There’s nothing like investing in yourself.
How have I invested in my career/myself?
- Trips. I know that travel isn’t an exact investment. You’re spending money to get drunk on a beach to “find yourself.” The thing is that trips will open up your eyes and expose you to a new world.
- Attending conferences. I learn better in person. I can read all of the articles in the world but they just don’t help me. I’ve attended many conferences to meet new people and to learn.
- Paying for help. This is humbling and difficult for most of us. I’m a smart ass with a bad attitude. I’ll be the first to tell you that I hate being told that I’m wrong or that I suck. Pay for help.
Invest in your skills and your ability to make money. I don’t know where I would be if i never invested money into my business ventures.
Here are quick investments that everyone can afford:
- Take a friend out for coffee. Do you know anyone successful? Take them out for coffee or lunch. Pick their brain .
- Read a book. I’ve become a slow reader. A book will cost you $20 and possibly change your life. GO FOR IT!
- Buy a course. There are lots of courses online that could help you. Stop being cheap.
#3: Trusting my financial advisor with my retirement stuff/investments.
Sometimes you just can’t beat the returns of the stock market. I used to buy individual stocks and day trade. Then I got bored with it. I also didn’t want to do this. I don’t have the stomach or the patience to be watching stocks 24/7.
I trust my friend who manages my investments for me. Sometimes it’s important to step away from the process. I prefer to manage my properties and blogs, but I don’t want to stress about my retirement accounts.
How can you start investing right now?
You need to have money in the bank to invest. This statement sounds obvious, right? It’s not. I run into friends who want to sprint before they can even walk.
Here are the steps that I follow before investing in something:
- Ensure that the money is there. Do you have the money in the bank for this investment?
- Don’t base my life on this investment going well. Yes, I know that it’s cool to read about the entrepreneur who risked it all on one investment working out. I personally couldn’t handle that kind of stress and risk in my life. Why would I want to do that to myself? I’ll never gamble everything I have on one investment.
- Research every possible topic on this point. Do you know everything about this? Ask a million questions.
- Set upper and lower limits. What are your limits? When will you cash out? When will you give up? You don’t want to sink with the ship.
- Ask friends. Have any of your friends investing in this?
- Ask more questions. Ask more questions. Join a Facebook group, check out forums and keep on asking questions. This is your money. It doesn’t matter how annoying you come off as.
- Go for it. It’s time to make the leap.
Watch the episode of Studenomics TV on this topic…
My investment philosophy will likely change now that I’m in my 30s. I may eventually have a family and kids and all of that fun stuff. I won’t be able to do the same things at that point. We’ll cross that bridge when we get there.
What are your best investments ever? Please do brag!
“In investing, what is comfortable is rarely profitable.” — Robert Arnott