In today’s episode, I try to answer a listener’s question of what factors to consider before we invest in something. If we take control back of our own money and take personal responsibility and accountability for our own wealth, what factors should we consider before investing in anything?
This is extremely important. The first thing we should invest in, is our own financial education. We should never invest a single cent into something that we do not understand. I will discuss other factors I put together in a checklist for us.
Bestselfco., Make Success a Habit! Use the Self Journal to organize and align tactical day to day tasks with larger life goals.
Key Take Aways:
- Invest in your financial education first
- Do not invest in anything that you do not know and understand
- Learn the difference between assets and liabilities
- Is the investment aligned with your principles and values?
- How is the investment providing value for others?
- How many people is this investment providing benefit for?
- Is this for the benefit of a few or are you providing value to your community and society?
- Is the investment aligned with your strengths and skill set, your human life value?
- Are you providing time, knowledge, money or credit to the investment?
- Will the investment return your capital and how quickly?
- How liquid is the investment?
- How Economic Efficient is it with regards to taxes, limiting and reducing fees and other factors?
- Do you have control over the investment, can you improve the performance and limit the downside?
- Does it provide cashflow?
- What is the return on investment and cash-on-cash return?
- What is the exposure to market risk, does it provide a return in all markets?
- What is the exit strategy for the investment?
“The biggest risk is not the investment but the investor” – unknown
Rich Dad Cashflow Board Game, this game will help you learn how investments effect your personal financial statements and what are assets and what are liabilities!
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