Which is the Best Investment?
What would you call a person, who?
One fine day goes to an airline counter at the airport and puts a bundle of money on the counter and asks, “Give me the ‘best’ ticket?”. In all probability, the airline staff would think he is crazy and send him back or ask him a few basic questions before issuing him a ticket.
Those basic questions would be:
Where do you want to go? (destination / goal)
How far or near he would like to travel? (time available)
Which class he would like to travel? (affordability)
Answers to the above questions will also decide which mode of transport is appropriate for him: plane, train or a bus.
Seems unbelievable. But this is how most of the people behave regularly. In my daily Money Coaching practice, I come across people who are always on the lookout for the best investment for their money – without having any idea what they mean by a “best” investment.
So, what is the “best” investment? Simply, it is what you think is the best for you.
For some, it is Real estate; for others it is Equity and for others it can be Gold. Everyone’s best investment depends on their personal choice. Surprisingly, it has got nothing to do with what should be the most “suitable” investment for them.
People spend days on end to decide about a small vacation: – where to go, where to stay, how many days, how much to spend, what mode of transport to take.
But they do not find it sensible to spend few minutes / hours to decide:
What is the purpose of their investment? Goal?
How much time they have to reach their goal?
How much money can they invest for this particular goal?
Answers to the above questions will decide, which is the most “suitable” investment for them
also depending on their readiness and ability to take risks. This “suitable” investment is the “best” investment for them, not something which they think gives highest returns.
The other “best” investment would be – investing in “oneself”. Spending some time and effort in learning about money – by reading, attending workshops and if that is difficult, by engaging a Money Coach!