19 Aug

Are You Investing Like an Idiot?

Are You Investing Like an Idiot?

Are You Investing Like an Idiot?

I see so many people who think they know all about investing. They know what the next big thing is, they think that the markets will keep going up forever or that the governments will always be there to assist. Nothing could be futher from the truth. People know the “next big thing” because they got information that has been regurgitated a million times online and in coffee tables. If someone knew the next big thing that would be a 100% success, they would put all their money in it and keep quiet.

The markets are going up currently and they have been going up ever since 2011. People have a tendency of going with the trend and believe that trends will go on forever. They see news about how IT-industry is great and how the stocks are performing well. This information is again brought in when talking with colleagues and friends. All of a sudden everyone is hyping about IT-industry and investing in it like they were the creator of that industry. Then dotcom crisis happened. And then people forgot and repeated the exact same mistakes but this time in another industry.

Does this sound like something you do or notice in the people around you? If yes, keep reading.

Lose Money

What Should You Invest In?

There is one investment that is above all else. That particular investment is 99% guaranteed to give you an infinite ROI as long as you keep investing in it. People often ask me “Tuomas, what should I invest in?”. Do you want to know what my reply is? It’s: INVEST IN YOUR EDUCATION! And by education I don’t mean going back to school to learn from teachers who have never done what they teach. I mean find the people who have already done what you aspire to do. The people who understand the difference between real and fake. If you ask me whether you should invest in real estate or stocks, I tell you that why are you calling it investing? What you’re doing is just finding a place where you can lose your money and call it an investment.

The problem in today’s world is the lack of education. People have been brainwashed into thinking that going to college and getting an MBA on finance will bring them fortunes. The only thing that the degree will bring you, is a lot of debt and high taxes. How about owning your own house? Isn’t that the best investment you can ever make? False, that is not an investment that brings money into your pocket. Your house is not an asset. It’s a liability. An asset brings money to your pocket, a liability takes it away from your pocket. Yet, so many people are tricked into buying their own dream home, to upgrade it when they have kids and then go flat out crazy and get a M-series BMW and a dog with their ultimate home. I wonder why the debt levels of working class people are increasing more than ever…

Where To Find Good Education?

You won’t find good education in schools! As stated before, find the people who have proven to know what they do. Most financial experts are actually sales people who don’t practice what they preach. I realized this on the first day of attending business school. I sat there with 500 students all ready get degreed up. It was during that first hour of the welcome party that I realized I was f*cked. There’s no way that 500 people studying the same subjects from the same teachers in the same school would ever become wealthy. Think of the statistics. What is the probability of 500 out of 500 students becoming millionaires? I’m too lazy to start typing the zeros after the decimal, but the probability is very low.

After realizing this I knew that I had to do things differently. I didn’t want to learn how to work for money. I wanted money to work for me. I started buying books from authors who were millionaires. Not the golden child-type but actually self-made millionaires. I studied what they did to get there. What they invested in and what mistakes they had done along the way. The only thing that was present in EVERY SINGLE successful person was investing in their own education aka self-education. Everyone read multiple books per month. All of them had a mentor or a coach or both. All of them shared habits that seemed to help them in keeping their heads cool while everyone else panicked.

It’s Not About The What. It’s About The When And Why

Before you dive into what you’ll invest in – after studying and getting financially literate – ask yourself why do you want to invest. Why do you want to be successful? When do you want it and when do you actually do you first investment. In times of chaos and panic, you’ll find the best bargains in investments. Are you willing to wait for that opportunity or are you one of the people going after lottery wins that make you rich overnight?

There are so many successful people out there who can help you. Some ask for you to pay them and some give advice for free. I humbly ask that you use both roads. If you’re not willing to invest 200$ now to get back 10x in the future, don’t start investing. If you don’t think that investing in yourself is the best investment there is, go to work and forget anything you have just read. Getting wealthy and not being average is reserved for the people who are willing to pay for it and understand that learning takes both failing and trying before that learning turns into income.

One of the funniest examples of having the wrong attitude was when I talked about jobs and how to get a job with one of my friends. He told me that he would like to get a new job, but he didn’t know how to apply or how to nail an interview. I told him that I would gladly help. I have personally been to tens of job interviews, gotten job offers from 80% of them and learned through mistakes what to do and what not to do. (Actually, when I first started trying to get a job at the age of 21, I sent out 30 applications and didn’t even get to an interview. That spurred me on to learn how I could become better and decrease my rate of failure.) I offered that I would help my friend now for free or that he could attend one of my workshop on the subject for 200 euros (210usd). He laughed and said, why on earth would I pay anything just so I can learn how to get a job? I hope you’re cringing as much as I did back then. If a person isn’t willing to pay 210$ to learn how to score their ultimate job, earn a lot of money and perhaps that way achieve their dreams, they deserve to stay unhappy. Ignorance is not bliss! Ignorance is pain.

Please, don’t be like my friend. Decide to take action and invest in yourself. Have you ever taken a course or read a book that you absolutely regretted afterwards? I doubt that you have. Take out your wallet and find a course, a book or a coach that inspires you. Get on with it and don’t dabble. Ain’t nobody got time for that.

Good luck to those who take action. To the rest of you… luck won’t matter.

And to the people who are ready to take action, check out Emfience Financial Training

– Tuomas

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