Investing is the act of allocating funds to an asset or committing capital to an endeavor (a business, project, real estate, etc.), with the expectation of generating an income or profit. –Investopedia
Investing is a part of every financially successful person’s life. Everyone wants to invest in stocks or real estate right off the bat, but I encourage you to broaden your view on investing. Start thinking about how you invest your time and energy before you even think about investing money.
The fact that you stumbled across this blog, shows that you are an investor–even if you’ve never bought a stock or property. You are investing in yourself through knowledge which is one of the most powerful investments of all.
Unfortunately, knowledge alone won’t make you money. You need to take that knowledge and turn it into action.
Almost everyone and their grandma are aware of what investing in the stock market is… buy shares low, sell high. It gets a wee bit more complicated than that, but if you are able to buy great companies at a discount, then you will make money.
Invest for the Rest’s Money Orgy
What if I told you I had a magical money love machine? You put some money in the magic machine and forget about it. The money in the machine has a money orgy. Everyone’s bangin’ each other left in right, just absolutely wild unprotected coitus day in day out. Then all your money gets pregnant and has little money babies who also bang each other and repeat the process. Now the babies are smashin’ and making more little babies. This goes on for the next 30 years and every month you toss more of your hard earned cash into the sex machine.
When you go to retire, there’s a big ass money family. All grown up and ready for spending.
That’s investing. So why the hell aren’t you doing it?
Excuses for Not Investing
1. I don’t have enough money to invest. You need money to make money right???
Right and wrong. Yes, to start a money orgy of your own you do need money. If you followed my saving advice from my previous post, you should already be growing your bank account. If you don’t have your saving habits down, then I suggest starting there. Don’t use your rent money for the orgy.
In the past, maybe people had a point saying, “how can I afford to invest when amazon is $2000 a share?”, but a lot of brokerage accounts offer fractional share investing now. This allows you to invest any amount of money in any company. Instead of spending money on that funny shower curtain that has a sloth dancing in the rain on it, you can profit off the stupid people that bought it.
I mean honestly, you’ve been saying you don’t have enough money to invest for the past 5 years when your money could have been smashing and making money kids. If you still don’t have money after all of this time of saying you can’t afford it, then obviously whatever you’re doing isn’t working.
You can’t afford to invest??? Bitch, you can’t afford to NOT invest.
2. Investing is risky. I don’t wanna lose all my money.
I’d be lying if I said there weren’t risks to investing. Of course there are risks. Sorry to break it to you but anything that’s good in life has some sort of risk. Not investing because you are worried about risk is like saying “oh well I’d better not go to college because there’s a risk of not getting a job after”. Or oh maybe I shouldn’t get married because there’s the risk of a messy divorce if things don’t go well. You make those decisions based on the proven track record of college grads making more money than those with just a high school education and the fact that there are happy marriages.
The historical return on the stock market is 10%. You can’t argue that. That’s just a fact. There were down years, and there were up years but the average is 10 percent. Ten times the average high yield saving account. In later blog posts I’ll teach you how to be smart and safe when entering the markets and we will match or beat this return over the long haul.
Success comes from taking smart calculated risks.
I’ll say this once and I’ll say it again…THINK LONG TERM. Just like life, there are ups and down to investing but if you put in the work, you will end up on top.
3. Investing is complicated and I don’t understand it. That’s why I haven’t been investing.
This might be the dumbest one of all. With this mindset you’re basically saying that you have reached the peak of your life. Anything that you don’t understand in your 20s and 30s, you will never understand. BIG DUMB.
That being said, the fact you are reading this blog shows that you are willing to learn something new. WOW what a novel concept.
Learning something that you don’t understand is how you got to where ever you are right now. “Hey we are going to promote you to manager because you are doing so well how does that sound?” Uhhhh well… I actually don’t understand management, so I’d rather not, thank you though.
Commit to growing as a person and welcoming new opportunities.
4. I will get around to it eventually. I’m just really busy right now. I’ll get around to it once XYZ happens.
If there is one thing you shouldn’t procrastinate on its saving and investing. When it comes to these two things, time is your best friend The more time you have in the market, the more money you will make and the less “risky” things become.
It’s really funny what people prioritize over investing. There are 168 hours in every week. For the average person, 40 of those hours are spent working and 96 of those hours are spent sleeping (if you get 8 hours a night). That leaves 32 hours left of free time. I get it, life can get hectic. But to sit here and tell me you can’t find 30 minutes a day to learn a skill that will help set up not only your future, but your kid’s futures? That’s just a lie. The only person that gets hurt by this lie is you.
The best part about investing is that once you learn the skills, you never have to learn them again and the time that needs to be put in reduces dramatically.
Everyone always thinks that they are busier than everyone else and that they for some reason, have less hours in the day then other people. That’s the great thing about time; it’s a level playing field. Warren Buffet, Elon Musk, and Bill Gates all are given the same hours in the day that you have. They just choose how they use those hours differently than you do.
This is the exact reason I’m making this blog. There are aspects of investing that are confusing, no doubt. But the general principle is something everyone should be able to understand. We aren’t going to be diving into PE ratios and EPS any time soon, but you don’t need that right now. I promise this will not be as painful or confusing as you think it will be.
Stay tuned for future posts where we will actually start learning the first steps, but in the meantime, please just take a good hard look at your life and what you spend time on. I guarantee you are not as busy as you think you are.