A new funding partner of mine called me yesterday asking if investing a small amount is really “worth it”. He said “I’m only clearing about 1500 bucks and risking 63,000. I mean, I can go work for 2 days and make the same amount of money doing something I love.”
I understood exactly where he was coming from. The day before, he had wired the funds out of his bank, and now, looking at a significantly lower balance, his mind began to wonder if investing is really. It’s happened to me on more than one occasion, too.
He’s right, he could go make that same amount in 2 days. But then it’s him working, and not his money. That’s work. Not investing. Maybe he didn’t immediately see that he should do both.
People need to be wealthy. This is the only safe bet we have for the challenges and uncertainties that are ahead of us individually, and as a country. We need to learn new things that add to and augment what we do for a living, and how we invest. This is the only way we can reduce the financial burden of any unforeseen events.
So his question of “Is it worth it?”, continued to float around in my brain during the presidential debate last night. And this morning. Why will it be such a great thing to go through the process of reviewing a new loan, paying the attorney review it, and then make the equivalent of just 9.6%?
I had asked him to compare this return against the other things he could be investing in: in a savings account at his bank, in the stock market, buying gold bullion, etc. I asked if he could get that kind of return that has the added security of the collateral, and in a short amount of time (3 months) anywhere else. Before I could finish asking the question, he interjected, “Of course not.” This is usually the answer we all give. So, is investing small amount really worth it?
As we begin to move away from our comfort zone, our mind gets a bit uneasy. The further away we move from what we ‘know’ about ‘who’ we are, the more uneasy our lives feel. And it’s not like we can ignore this. It’s conditioned from day 1.
The way to move beyond this is to continually put ourselves into moments that make us uneasy. That way, ‘uneasy’ becomes the norm. We can try new things, explore new thoughts, and have new experiences. And we learn in spite of the fear. We’re developing courage.
His first question of ‘worth’ depends on his goals. This might also be the same for you. Here are a few questions to help figure this out:
- Do you need to get your money working – do you need to begin investing now?
- Are you in your forties (or older?) and beginning to see the writing on the wall?
- Do you see a future that can only be obtained by stretching beyond what you know?
If you answered yes to those (I did!), then the answer is a resounding YES! The only way to see if it’s worth it, is to compare against what else there is, see if your plan can be implemented and… Do it!! Afterward, measure the results: Risk vs. Reward. If it’s a good fit, do it again. Soon, you might see yourself only doing this, because it’s now become easy. And you’ll want to continue investing over and over and over, because it’s comfortable.
Yes, my friend. Investing most certainly IS worth it. And not just financially.
How can you stretch beyond what you know, right now, and make investing ‘Worth It’?