For this article we’ll define investing as putting up money with the hope of future gain. Investing takes many forms. Some of the more well known involve Stocks, CDs, Bonds, Real Estate, etc. It’s important to note however, that almost anything can be an investment. A gym membership is an investment in your future health.
So to begin with, you need to open your mind to the endless possibilities around you. There are investment opportunities everywhere. Loral Langemeyer has a great new book out called “The 21st Century Lemonaide Stand” She really challenges the reader to think about “How can I make money today?” She relates the example of chilhood - You just had to have that new baseball glove, bike, barbie, or whatever, but didn’t have the money. Mom & Dad weren’t going to buy it, so you had to take matters into your own hands. Hence the lemonaide stand.
Far too often people feel that because they have no expertise in the stock market or real estate they just can’t be investors. Nothing could be further from the truth. First, if you want to participate in the markets all you have to do is learn. There is no such thing as a born trader. All skills can be learned, it’s just a matter of how determined you are.
Let’s change gears for a minute, while it’s possible to learn any type of investing or market first ask yourself what is it that I already know? It may be a job related skill, a hobby, or just a love of something (cars, books, hunting, cooking, collectables). The list is endless. The benefits of investing in something you already know are many:
1. The learning curve is shorter. You don’t have to start your training from scratch.
2. If you know about it, you probably enjoy it. This makes additional education and effort much easier.
3. You’re probably already engaged in it to some extent. As an example; I play in a band, and one of my band mates trades in guitars. He buys and sells them and makes a good profit doing it. I don’t know a good guitar from a cheap one but this is his passion. He loves it and also enjoys the extra money it puts in his pocket.
4. You’re not alone. Chances are, there are others out there who are interested in the same thing you are. And chances are, you know some of them. This is a built in market for your products or services.
So the lesson here is to open and expand your thinking. Just sit down with a pencil and paper and list all the things you have even the slightest interest in. I’ll bet your list will be longer than you think.
I’ll be posting more articles on investing in the near future. Until then, thanks for reading and visiting the site,
Tom
