Best Investment You Can Make
What’s the best investment ever made? What’s a great move that you can make with your money right now?
Sometimes the best investment ever made is the one that you don’t make. Yes, you read that right. Not making a certain investment can be more of an investment than making one.
Why is the investment not made such a great thing?
The risk involved.
When your money is in a safe savings account you don’t have to think about the risks constantly. Your money sits there while you go on with your life. Whenever I take risks with my money (real estate, stocks) I find myself constantly thinking about my money and the risks involved. This is not a good way to live life.
Toll on your health.
Your health can become affected negatively when you’re stressed out. When the stock market crash happened in late-2008 many investors were ready to lose their minds. Imagine having your retirement savings wiped out? What if your home lost half of its value? This toll on your health is not worth it.
Opportunity cost with your money.
What else can you do with your money? Any time you make an investment you’re taking your money away from another opportunity. You’re also tying your money up and decreasing your flexibility. You never know when a better investment opportunity will come around. You also never know how a specific investment will work out. You don’t want to be bashing your head when the home you purchased went down in value while the other home doubled. This is why the best investment can be the one that you don’t make.
Can you think of any situations where not making an investment was the best investment?
(photo credit: lain farrell)
