Sometimes the best investment doesn’t look like an investment.
Point #1 – Before you invest in property, stocks, or anything else, you have to look at your debt.
People don’t realize it, but sometimes paying down additional debt has the BEST RETURN on your money? 20% on a credit card is a better “investment” than buying a stock with a 10% return. That’s a 100% better return on your money.
Let’s say you get a check for $10,000 and are looking to invest it. If you had $10,000 in credit card debt at 20%, that’s going to cost you $2000 in interest. If you took that $10,000 and invested it in the stock market and made 10%, then you would make $1000 and of that $1000, you would have to pay taxes on top of that! If you pay 20% on it, then you only made $800.
That means your actual investment earnings was $800. You could have kept an extra $1200 if you had just paid off the credit card!
Quote – It’s not about the money you make. It’s about the money you keep! That’s not just a reference to spending, but taxes too.
Point #2 – Do you have 6 months of your monthly expenses saved? If not, invest in stability and your financial foundation.
Can you imagine trying to build a house without laying down a foundation? That’s what investing without 3-6 months expenses is. Because most good investments require time to accrue additional value and can often fluctuate in value or be unavailable altogether. Well if disaster strikes and you need to pull your money out prematurely or can’t access the money because its locked up, then what good is it if you get kicked out of your house!
Investing in your financial foundation is the best place to start.
Statistic – 2 out of 3 people don’t have $500 saved
Point #3 – Invest in what you know or pay someone to invest in what they know for you
Trading stocks is a bad idea for most people. Emotions will ruin you financially. So paying someone to manage your money is often a fantastic way to go.
Do you know the real estate market really well? Then researching and buying property is probably the way you should go!
Investing in a new business has a massive upside! Are you looking to start a side hustle or full time company based on a hobby or passion? Then this can be a great investment as well! It’s risky but has a huge upside.
Not an expert on any given thing? Then find something you enjoy that you could monetize and invest in yourself! Buy on
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About the Podcast
If working a 9-5 for 60 years so you can retire with a little money and die a few years later is what you want to do, then this is not the podcast for you.
Stephen is an executive coach that works with ambitious people to build the life that they want, personally and professionally.
This podcast is about contrarian investment strategies around time, energy and money to build the 4 types of wealth and utilize lifestyle design to create the life we want. The interviews are with hi-earning individuals on how they make money so you can copy us and grow wealth too!
Reaching that first $100k milestone is crucial and then the game changes.
Learn how the wealthy view time, energy and money so you can apply these proven strategies to your life.
