There have been some moments in my life when I realize I just made a discovery, a moment so clear that I felt ecstatic. One of those moments was when I realized my life was an investment. Not the type of investment you put money in on and walk away, this was the type of investment that required a life-long commitment.
I was driving along the county roads of Florida when the idea hit me. At this point in time, surrounded by tall trees and pavement, I started relating the different investment terms to my life. The deeper I dug the more shocked I was to see how much sense it made. If we apply financial principles to our personal development, we could see huge returns. Basically, the strategy is to keep you incoming flow higher than your outgoing flow by using different methods.
With this in mind, let’s look at three aspects of your life you can start thinking about in terms of investments:
1) Time
The first term relates to time and how we invest it. It’s called “Time Horizon”, or the time you need to take before reaching your financial goal. This term helps me think long-term. When was the last time you planned 10 years in the future? It’s been a while, right? Well, sometimes it’s not that easy. Don’t get me wrong, sometimes I create the perfect plan just to change it the very next day, but it all comes down to bringing the concept of time my life. I decided to set goals for every decade of my life and I actively pursue them until I reach them or until I restructure them with a different scope. Start thinking about your time as a scarce resource and you will start investing it more efficiently. Be intentional about your time and invest your time to grow your assets and not your liabilities.
What is your time horizon? What do you want to accomplish in your 30s, 40s, or 50s?
2) Relationships
The second term is all about the people we share life with. “Risk Tolerance” is the amount of variability you are willing to take in your investments. In this case, do you want stable relationships that align with your goals or do you want unpredictable relationships that take you away from your goals? I would say, that the answer to this question is: it depends. Like the word says, it is all about how much you can tolerate being pulled in different directions. If you feel your relationships are taking a toll on you then you need to do something about them. I try to keep my relationships extremely selective. I understand every relationship is risky, but I make sure they align with my lifestyle and goals. After all, like Jim Rohn, the author and motivational speaker, says, “[we] are the average of the five people [we] spend the most time with.”
What is your risk tolerance? Who are the five people closest to you?
3) Knowledge
The third term is the one that could sound the most familiar to an investor. “Diversification” or owning different investments that tend to perform well at different times to increase the potential for increasing returns. When it comes to knowledge, we usually think of knowledge in terms of a destination when in reality we should be thinking of knowledge in terms of a vehicle. Use that vehicle to diversify your skill base, ideas and experiences to maximize your potential. I try to pick new activities often to keep myself challenged. Stay curious about your surroundings and start asking yourself questions that go beyond the ordinary. Keep your knowledge vehicle running to increase your potential for increasing returns.
What are you doing to diversify your life? Which was the last hobby you picked up?
I started investing in the stock market last fall and the more I learn about it, the more I realize if I want to be successful I have to start living as an investment. I invite you to do the same, start thinking about these key words before you make decisions, purchases, or even connections. Now I ask you, will you start investing in yourself?