We’ve all heard them, words combined together like jumbo shrimp, dry ice and government intelligence. They really should never be used in a sentence together but have become acceptable in general conversation. They are known as an oxymoron. My blog today is about another common oxymoron, investment strategy. While investor’s should establish investment goals and plan a course as to how they will achieve those goals, yes a strategy, there is very few indicators in the marketplace today that would suggest that investors or their advisors truly have a strategy. It appears that people are pouring more and more money into the same poor investments without thinking of the eventual outcome. I blame this on Wall Street, investment brokers, financial advisors and the numerous bombardments from writers of the media outlets, who all have a motive of monetary gain. It’s time for people to start listening to themselves rather than others.
We all have some financial goal that we want to reach, be it saving for college, a once in a lifetime trip or retirement, it really doesn’t matter what that goal is but when it comes right down to defining what we all really want it is to be rich. To have enough money to purchase whatever we need and desire without having to worry that funds will run out. For most people the goal of being rich is a dream but it doesn’t have to be. We just need to make the right investments, have the right investment strategy.
What is the best strategy? Investing in you! Quit making investments that make other people rich. If you have a lot of earning years ahead of you and aren’t going anywhere in your chosen career path go back to school and learn a skill that will allow you to maximize your earning potential. Invest in your education. If you are maximizing your earning potential but are still renting your residence, commit yourself to home ownership. If you’re a business owner and your business is still renting, it is time to buy your own building. Why make someone else’s dreams come true when you could be paying rent to yourself rather than to them.
As a kid in high school I took a required class that was design to teach all students life skills that would be necessary when they graduated from school. Things like balancing a check book and the like. The one thing that really stuck with me from that class was when my teacher said, “When you receive your pay check, pay yourself first”. He went on to explain how we should take a percentage of the money we earn and save it. Pay yourself first … a novel investment strategy, oxymoron or not.