Is it smart to invest my money?
It is said that life is what you make it, but that is not always the truth. Some people apply substantial amounts of effort, but in the end come up well short of the results they wanted. There are many who work very hard yet have very little, and then there are others who rarely work yet have plenty to show. If you were ever the student in college that left class early to make it to work so that you didn't lose your minimum wage job, then you might better understand the question that titles this article.
We all come from different backgrounds with different abilities. There are physical abilities, mental abilities, spiritual abilities, emotional abilities and of course financial abilities. We have all seen the amazing and defying physical abilities of determined individuals who were once told they "can't" because of a medical condition or an injury. We have all heard defying success stories from individuals who were told they "can't" because of a mental illness or handicap. I am going to tell you now about financial disabilities and the importance of the word, "can".
Money does not wait for anyone in this economy. It is a fair game with unfair starting points. Picture being in a track race but the person in starting position next to you begins the race already 2 laps ahead. Winning will seem impossible, but remember there are always unforeseen factors. It may be discouraging running side by side with someone who is set up to win, but what if they suddenly got a cramp. Now they stopped running just long enough for you to catch up and cross that line first. The point is, keep applying effort and focus on your own goals and achievements. It is easy to be side tracked by someone else's story and fortunes, but it will only slow your own progress. So what he made a 200% return on that stock you didn't invest in. Is it still a good company? Is there future steady growth potential? It is okay to be late to a healthy investment. I believe it was Warren Buffet who said that if you are not in it for the long term then you shouldn't be investing.
Investing your money could mean many things. It all comes down to personal interest, or at least is should. If you are not interested in something, then it may not be wise to invest your hard earned money. If you enjoy personal growth, then maybe you invest in education. If you enjoy analyzing companies and performances, then you may choose to invest your money in the stock market. If you enjoy rehabbing homes or managing properties, perhaps you invest your money in real estate. If you are into collecting physical items, you might invest in your collection of choice. When it comes to investing, it is first and foremost wisest to have a personal interest in your investment.
Is it smart to invest your money if you are in financial hardship? If you find trouble paying your bills on time and maintaining the necessities of life, then you need to prioritize spending and allocate any possible income properly until you feel above water. If you are questioning investing your money because you have been saving for a nicer car instead, you might want to weigh depreciating value of a motor vehicle versus a Return on Investment (ROI). Most people have some kind of habit such as drinking coffee, smoking a cigarette, drinking alcohol, soda, a daily candy bar, etc. If you can afford a dollar or two a day on such an item, then by all means you should invest a dollar or two a day on your future financial status.
If you find yourself saying you "can't" because
of financial reasons, you need to discover that one habit you may have that is holding you back from better wealth. You need to find that one expense that you tolerate but is not necessary. Perhaps you own a TV, but never watch the movie channels you pay extra for. Easier said than done, I understand, but now it might be clear that you 'can' but rather not.