During the road trip to Dallas last week, I chatted about investment with my friend a little, along with other stuff.
Afterwards, I gave the notion of investment some more thoughts.
How do I define my "investments"? The word is used in different ways in different occasions.
Following four categories are my "investments" for which I use my time, make efforts, or spend money.
**********************************************************
You use your time, make efforts, or spend money for;
(I) Improving yourself and your arts to increase your own market value or to be more competitive
This includes your education in school, training for a particular work, learning and practicing skills, getting qualified for something, etc. This can even include money spent for your appearance and clothes. Its eventual aim is some type of return, but the return may not be immediate or direct. This process itself can be very satisfying, in fact.
(II) Improving yourself to know more about investment "avatar" and/or "vehicle" (see (III))
This is what you do to be knowledgeable, or to not to be stupid at your own investment. Thanks to this "investment", you can distinguish real investments with calculated risk from reckless gambling, scam, fraud, or total waste.
This is a critical preparation stage for your actions in category (III).
(III) Creating avatar or owning vehicle that make money for you on your behalf
This is most traditional sense of "investment". Building your business, writing a book, buying stocks, bonds, mutual funds or real estate, etc etc.
This is where leverage works. If/when you are good at this, depending on what you create or own, you can achieve dis-proportionally big financial success compared with what you can do as a person.
(IV) Developing or growing something that would give you some form of return or satisfaction
This is an expanded use of the word "investment", not only in financial sense. This "investment" is your time, efforts or money for your better future. This may be the time spent to be with your friend or family or to experience something new or special; efforts for raising your kid or for growing relationship, or for helping your cause or community etc, etc. You can earn something that may be hard to measure in terms of money, like trust, friendship, credit etc.
This may or may not make financial sense. It could rather be named giving or charity. But this can be most important for your emotional self and overall well being.
**********************************
It is fun to take the "scattered-minded" random approach. But at some point, you would have a certain idea as to what you do better or are made for. Then, if you want to achieve something on what you are made for, you need a focused approach.
Evaluating how you use your resource (time, efforts, money) in terms of "Investment" has a good effect on your result, especially when your course is set and you need a focus in what you do.
