Section IV - Lesson 10
Avoiding Other Forms Of Investment
Except for the Section IV Summary that follows this lesson, you have come to the last lesson of this course in Financial Independence 101, which we call "How To Invest Your Money And Build Wealth".
As your instructor, I would feel remiss if I did not take the time to talk to you about the subject of this session. Take the time please to read through this material because I can assure you that it comes straight from the heart.
You will hear about many other ways to "invest" your money besides the way that I have strongly recommended to you in this course. None of them will produce the long-term results of this program, as safely, as easily, and as consistently as is possible with this program.
The greatest criticism you could make about this program is that it's boring! It makes for pretty lame cocktail party conversation while others are boasting about how much money they are making on:
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hot tips from their broker, |
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day trading, |
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trading options, |
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trading commodities, |
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buying real estate, |
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picking stocks, |
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or you-name-it. |
You may even find that you're too embarrassed to mention that the way you're building wealth is through a long-term master plan of saving and investing small but regular amounts of money on a systematic and consistent basis.
But long after your partying friends have discovered that the things they've been trying to do are just not working to make them rich, you'll be living the comfortable life with the wherewithal to do all sorts of non-boring things any time you choose for the rest of your life.
There are problems involved with each of the various alternative types of "investments" that we mentioned above.
Trading, whether it involves stocks, options, commodities, hot tips or whatever, is a form of speculation rather than investment, and the thing that finally gets you is the same thing that ultimately gets the gambler. As you win, you keep on playing and usually continue to play and increase your bet until you lose it all. No one ever quits when they're ahead, which is what led Damon Runyon to state that "all hoss' players must die broke!"
Buying land or real estate or rental property can be rewarding, but can require loads of time for research, lots of expertise or professional and legal help, and infinite patience when the time arrives to try to take some money out. As an investment, it lacks the "user-friendly" nature of a mutual fund.
Still, most of us, myself included, are not immune to the lure of an exciting opportunity. If you think you've stumbled across the next "Microsoft", who could blame you for buying a few shares in the hope of being able to contribute cocktail conversation at the next big party. Just don't buy too much. And don't do it at the expense of your regular monthly investment program, which is another way of saying, "Don't quit your day job!"
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