Saturday, November 17, 2018

What is the best investment?

When we think about investments we usually think about various investment options like real estate, stocks, bonds, fixed deposits, various metals (gold, silver and other metals), cryptocurrencies, retirement funds (401k) etc.  We tend to research which asset class outperforms others.  Some of us even think that buying expensive houses and cars are investments too and that is a different discussion altogether.  While there is nothing wrong investing in these various asset classes, we often forget about an investment that is essential and may potentially offer exponential return with little risk. So, what is this best investment?

My belief is that the best investment that I can make is on myself.  Often we neglect this fact.  We spend a lot time researching about traditional investments but seldom spend time to research on the ways that we invest on ourselves.  What are the ways that we invest on ourselves?

Although there is no fixed list, I think the following are some specific ways to invest on yourself:
  1. Investing in your mental and emotional health: Few ways we can invest in improving mental health is by meditating, praying, reading books on various subjects.  
  2. Investing in your physical health: Exercising everyday, proactively taking care of health by periodically undergoing physical/dental/vision assessments. 
  3. Investing in your profession: Taking professional courses, attending conferences, networking with people.  I found the concept of "Interesting people fund" suggested by Reid Hoffman in his book "the start of you" very intriguing.  This is a portion of your savings dedicated to meeting new, interesting people.
  4. Investing in your hobbies: cultivating hobbies.  Hobbies are best ways to recharge yourself and who know sometimes hobbies may develop in to interesting professions.
  5. Spending quality time with family: Spending  quality time with family instead of passively consuming television, social media etc.  Going on vacations.  Teaching kids new things instead of giving them tablets and phones.
  6. Keeping in touch with friends:  regularly meeting friends, inviting them for dinners, skype calls with close friends who are away.
  7. Participating in community events: being part of some community.  Man is a social animal.  Research proved that people who live among strong and helping community live longer, happier and healthier.


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