In the last 2 years I started writing multiple articles about investments and how to save smart for old age and, at the same time, I started receiving messages/questions on what are the best investments we can make.
I don’t always come back with concrete answers each time, because there is no quick and concrete answer for each. It is hard to make recommendations, after 1-2 e-mails, to say that you should invest in the stock market or in a mutual fund or in insurances, on the investments part.
Even with all these articles you read on different blogs about investments, you don’t need to perceive them as a quick, safe investment. You must read the information on blogs, transpose them for your knowledge and you must start reading about them.
Lately I have been thinking about the following:
- Why wealthy people have ended up controlling money?
- Why are they successful people?
- How did they end up having successful businesses?
- How did they end up earning the X amount of money?
- How did they end up investing the Y amount of money?
- And many other questions about how and what a rich man is doing.
One of the biggest investments they made and are still making is the one in their OWN EDUCATION.
THE BEST INVESTMENT IS IN THE OWN EDUCATION!
The answers I get from some of the people I talk to about this topic, when I tell them about savings, investments, personal budget, are the following:
- “how much do you earn if you can afford that?”
- “you can’t do anything with the minimum wage”
- “we don’t have enough money to live”
- “it is hard”
- “at the end of the month I have no savings to invest”
- “it is hard to invest and it is only for the rich ones”
I don’t think there was an answer to the question in the title which you would not have expected, but you must understand that this is the answer.
When you say investment, it must not be necessarily financial.
And investment can be time related.
In education, time is the most important resource you can invest. You must give yourself time in order to end up controlling your money.
No matter how much you want to learn to invest, until you are ready from the personal finances point of view, it is hard to make this step.
An investment in financial instrument needs quite a high level of understanding and management of the financial resources.
Financial education means:
STEP 1: PERSONAL FINANCES MANAGEMENT
STEP 2: SAVING
STEP 3: INVESTMENTS
It is quite hard to reach step 3 directly, skipping the first 2 steps. Most of the times, those who reach step 3 quickly are risking losing their money and don’t have a good control over them.
To reach step 3 easy, the step involving investments, you must go through the first 2 steps.
The first 2 steps consist in: management of the personal budget, budget preview, budget achievement, management of the decisions on personal money, strategies for saving and many others.
All these CAN BE LEARNT.
Even the biggest billionaires say that the investment in education must be the biggest of them all.
You must direct somehow your time and money on this path and you must always try to learn new things.
Investment in education means:
- Reading all kind of personal finances articles (on all possible blogs),
- Taking part in workshops / courses (paid or not) – not only for financial education, but also in those related to your specialty. Learn to be the best in what you do and maybe you will earn better at your job.
- Having a mentor in Financial education or even in your specialty (paid or not),
- Taking part to all kind of online programmes/webinars,
- Buying books and reading them – here you can find an extremely large list of extremely useful reviews.
- Meditating on all information you read.
- Discussing about these information with your close ones.
You will never get to really understand investments if the personal management of money is not all that it should be.
And don’t forget!
AFTER YOU LEARN, YOU MUST IMPLEMENT EVERYTHING YOU HAVE LEARNT!
Even when we read books or take part in tens of courses, if we don’t implement what we learn, results are zero.
Education profitability appears when we implement what we learn.
I advise you to invest more in your education starting tomorrow. To read more books and to attend more courses.
Try to learn economy and to understand what can happen with your financial life following some fiscal/political decisions.
Try to overcome the “it cannot be done” mindset and try to earn more money.