I enjoy discussing the economy, and investments that could benefit from the economy. I like to give advice on saving money, spending money, and protecting the money you have. That is one of the main focuses of this blog, along with commentary on politics and libertarianism.
For this post, I just want to remind people not to forget about an important investment. It is more important than your financial investments. You must invest in yourself.
Perhaps this sounds cliche, but it really is something people forget about. You would be amazed at how many people will risk thousands of dollars in the stock market, yet won't pay a couple of hundred dollars to attend a seminar to advance their career or that might help them in a side business.
While I don't think you should throw money away by just picking things at random, there are worthwhile things to invest your money in for yourself. Maybe you need to get a couple of good marketing ideas that will provide the breakthrough you need in a side business. Maybe attending a seminar will provide a contact for you that will help advance your career. Maybe you are interested in real estate investing and should attend a real estate investing seminar. Perhaps just attending will give you the motivation you need to buy your first property.
There are any number of examples that one could come up with. But the point is that you shouldn't be a cheapskate when it comes to investing in yourself. Almost anything that gives you greater knowledge and better networking can be viewed as money well spent.
Most people will not get rich. For the few that do get rich, most of them won't do it by investing in financial instruments. It will mostly be done through higher incomes from really good jobs or from running a business. Of course, when you make a high income, you do have to be wise enough to not squander your money.
I don't want to say that investing is like playing the lotto. But unfortunately, some people actually view it this way, except they think they can win this one. But most people will not get rich quickly, or really get rich at all, by just investing in financial instruments.
Compounding interest over time can certainly be a powerful tool and it shouldn't be ignored. But it is probably even more important that you have your own compounding interest for your knowledge and productivity. For this, don't forget to invest something in yourself.