Imagine waking up, opening your laptop, and looking at a few graphs. Then, you shift money from your bank account into your equity of choice. Your money is now working for you. In fact, you’ve finished working for the day. Isn’t this the dream life? It’s so tempting and so sexy.
What if I were to tell you that there is another way to “make your money work for you” and get way better results? That there was a more innovative, more intentional way? That that way would allow you to get 200%, 500%, even 5000% return on your investment?
If you want to achieve these kinds of returns, continue reading. I’ll show you why investing in yourself and your business is superior to sinking money into equities. After all, unless you have lots of money or time, you can work way faster for your money than your money can for you.
Skeptical? Continue reading and hear me out.
Chances are, You Will Get Much Better Returns Investing in Yourself
Do you have a large amount of money to invest? No? Then you’re likely to get excellent returns investing in yourself. These returns often beat the capital gains made in cryptocurrencies or stocks. Don’t believe me? Let us look at some cold hard figures.
The S&P 500 is currently considered one of the best investments on the (US) stock market. It returns an average of 10% per year before taking inflation into account. But let us discard that figure for now.
Better than the Stock Market
Let us say that you are an above-average investor. You have been able to sustainably get yourself 30% returns by investing in individual stocks you have scoped out and researched. Let’s say you have invested $1,000,000 Jamaican dollars this year (~ $6500 USD). You would have ended up with an extra $300,000 JMD (~ $2,000 USD) by the end of the year.
Let me say that again. In the space of an entire year, after investing 1 million dollars, you have made 300,000 dollars (2,000). I don’t know about you, but I don’t consider this much money after a year of work (regardless of if it is you or your money doing the work).
Better than Cryptocurrencies
Let’s look at bitcoin now. Let’s say you agree with me about stocks, but I am still wrong because bitcoin is the answer.
Now, I’ve considered the volatile nature of cryptocurrencies. So, I am going to give you the benefit of the doubt. I’ll say that you are a WAY above-average cryptocurrency investor. By some miracle, you have been able not to lose money. Instead, you’ve gained 100% returns on your investment by playing the markets.
You spend one entire year following crypto news. Then you buy and sell at exactly the right times (or you use the HOLD strategy). You have earned 1,000,000 JMD. Better, but still, this is not much money for one entire year of work.
These earnings, in the world of business, are chump change.
Both of these examples, in their respective investment niches, are excellent returns. Now, let’s look at those earnings from the perspective of a small business. With JMD $1,000,000 invested, and earnings of only $300,000 to $1,000,000 dollars per year, a business like this would be considered by most to be poor performing.
Spendable Cash vs. “Theoretical Earnings”
Most people seem to leave out something when discussing investing. The money you have earned is not usable to you in real life. To take these earnings from theoretical into practical reality, you must sell your asset (and at the right time). Once you sell your investment, it follows that you no longer own it, or at the very least, you now own less of it.
What’s the significant advantage of investment into software to optimize or earn for your business? The money/savings is immediately helpful to you in real life. You can use this money to improve your quality of life. Or you can reinvest it into your business to achieve even greater earnings in the future. Meanwhile, you will still own your company, the underlying asset that is facilitating these earnings.
A business is a cash flow system that generates real money.
Skeptical person: But Adrian, what if you invest in your business and don’t see any returns?
Me: But Skeptical Person, what if you invest in cryptocurrencies and lose your money? It goes both ways. In one instance, you have a high level of control over the outcome, while the other leaves you at the mercy of the market.
Do you want to find sensible investments you can make into software for your business? You will need to use your creativity to come up with an idea. Then you’ll need to collaborate with an expert software consultant. An individual like *cough* like me *cough.* I can understand your business objectives and execute your vision. I can also suggest improvements, features, and optimizations. In that way, you can earn yourself even more money and time than you anticipated.
Here are three quick and easy examples on how to do so:
- Invest in custom software to automate your business processes
- Invest in your website to turn more of your visitors into leads
- Invest in business coaching
Why Are You Putting Your Money into Growing Someone Else's Business?
This one strikes home with me. Up to as recently as last month, I spent years pouring the majority of my extra income into the stock market. I never even gave it a second thought. Then one day, it hit me like a ton of bricks.
Your business is not yet where you want it to be; you still have a lot more to do. So ….
Why are you spending your money on someone else’s business if your own business needs love?
I’ve noticed a common feature in the businesses that become extremely successful. This trait is also common in the other consultants I respect (and aspire to surpass). All these businesses became successful by reinvesting in themselves and their systems. This constant reinvestment is a pattern.
Take a look at the Forbes top 100. Most if not every person you see listed there made their place on the list through business. Does that list have any crypto or forex investors?
Stocks, cryptocurrencies, and forex are all legitimate. They’re great ways to store and multiply your earnings. I would be a fool to say that they cannot play a critical role in maintaining your wealth. Yet, when it comes to generating income, they all come secondary to your business.
The Opportunity Cost of Spending your Time Researching Cryptocurrencies and Stocks
This one is for active investors. It’s for those individuals who choose to manage their portfolios themselves. The ones who want to ensure that they “beat the market.”
In business, time is more valuable than money. So, investing your time is one of the most costly spends you can make. There’s only one way to make sensible decisions in crypto or stock market investments. And that way is to spend time educating yourself on the equities.
Besides, what people often overlook is that they also need to keep up with their investments. You have to ensure that they’re still sound in a shifting environment. It means reading business news and quarterly/annual reports. It also means spending hours on Reddit or CoinDesk. You’ll need to follow the latest developments in technology and the crypto market.
Imagine if, instead, you had spent that same amount of time thinking about how to make more money. Or considering how to save time in your business. When I made the switch, within one week, I developed a new service that I have since sold many times. I also created a strategy to increase my leads which will very likely result in even more sales.
I have earned a considerable amount of money through making this mental shift. It is many times what I would have if I had continued to spend it watching dividend stock channels on YouTube. It is not even close.
In closing, I am not saying that investing in stocks, bonds, cryptocurrencies, and forex is a waste of time. I still put aside a part of my yearly earnings for the stock market.
What I am saying is that as a business owner, this should never be your focus. These investments pale in comparison to you making the mental (and fiscal) shift. You’ll see the difference if you invest money and time into optimizing your business.