When most people think about investing they automatically think about the market. However, they are missing the boat on what investing truly is. Investing is using your hard-earned money(resource) to create more money(resource). Simply putting your money to work. The days of handing your money to a financial advisor and forgetting about it are over. There is definitely a time and place for that type of investing, but it is not the end all be all.
Those of us who are still in our earning years and who have at least a decade left before retirement. We need to start thinking about the big picture of investing. If you are truly interested in earning a higher return on your money. We need to start thinking about getting our hands a little dirty. If you are interested in making sure you are in a good financial position come retirement, than you may need to get out of your investing comfort zone. This means investing in areas where there is real stability and a real return.
My parents(baby boomers) invested heavily in the market. This was their retirement. They put it there and forgot about it. That is they forgot about it until they lost it. They did what the majority did and got what the majority got, when the markets started turning south a few years ago.
As a Gen Xer, I feel the millennial and Gen Xer’s will have investing success with a more diversified approach. Now is the time to acquire your assets. Saving is good, but if you feel comfortable putting your money to work, than put it to work. Some of the investing options that I encourage others to get involved with are.
1. Buying businesses.
For those of you that are unhappy with your current job, or have always thought about starting a business. Now is a great time to tap into your entrepreneurial spirit and start a business. Most people think owning a business is risky. As a business owner you have multiple customers or “bosses.” If you lose a customer here or there it may affect your revenue, but it isn’t going to put you out of business. However, when you have a job and you lose your job you lose your one customer, your boss. Which results in you losing 100% of your income when the guy upstairs decides so. As a business owner I feel much more comfortable being in a position that I have full control of my success.
2.Buying real estate.
Buying residential real estate is very similar to buying a business. In fact I view each of my properties as an individual business with revenue and expenses. I then look at my portfolio as a group of businesses working towards the common goal of debt reduction through full occupancy. I love real estate, it is one of the best business models that I know of. The 3 common ways to make money with real estate are 1. Cash Flow, 2. Appreciation, 3. Tax deductible depreciation.
3. Building your current business into passive income money tree.
Whether you choose the first of the second investing option above, number 3 is how you turn your business or your real estate portfolio into a revenue stream for your retirement years. Build your team, build your systems, pay down your debt, or fix up your property. These are the common ways to turn your business into passive income.
I truly believe that these type of investing options are the best ways to reach your personal goals over the next 15 years. I encourage you to get out of your comfort zone, get involved, and take action.
What are you investing in?