Let's talk today about the difference between speculation and investment.
I see a lot of people who are always looking for the next big hit, or the next bandwagon to jump on.
And typically, it's something that’s not within their area of expertise.
Most people today have a business or practice, which is where their primary focus should be – because that's where their best return on investment comes from.
Invest, first in yourself to make yourself better, and second, in your business or practice. Those are the absolute best investments you can make.
Now, if you've optimized those areas to a high degree and you're ready to move on, you can start exploring other areas.
That's when I tell people: In my experience, real estate is the best area to get into.
Doing that the right way is what has built my platform over the years, and allowed me to become free.
A lot of people are looking for that quick bump. They want to find something that will move the needle faster, and get them to financial freedom at lightning speed.
It's what I call trying to hit a home run.
The problem with those kinds of investments is that they’re not really investments – they're speculations.
Speculation is like gambling. You're throwing money on the table and hoping to come up with sevens – hoping.
If you've got a certain amount of money set aside to play with, and it’s part of your DNA to speculate, go ahead – but marginalize that amount of money.
For your primary goals of financial freedom, you need to take the bulk of your discretionary income and invest in a way that predictably builds well.
That's the key: Predictably.
Not ups and downs, not trying to hit the big home run and then not hitting any for 50 years.
That doesn't work. You've got to be predictable, and let the compound effect continue to build your wealth over time.
That compounding over time is what moves you from Point A to Point B.
It’s not just about accumulating a lot of money like you would on Wall Street. The key is: Building net worth that can easily be converted into cash flow.
The problem with Wall Street is that it never can produce cash flow on a regular, sustainable basis.
You can build up money there if you put a lot in, are really disciplined, and don't have recessions that take it all away every ten years.
But even then, can you turn that money into cash flow that can last the rest of your life?
That's why most professional practice owners and business owners can't let go of their practice: They're afraid.
Even if they've got a couple million dollars or more between current assets and selling the practice, they still wonder:
“I don't know if I can take even that amount of money and make it work, because I never have, all my life.”
“I've just given it to a financial advisor and said here you go, do the best you can with it,” and they do the best they can with it.
But the stock market is what it is. You can't really win there.
You're buying the whole market. And if that's what works for you, then stay there.
But for 96% of our professional practice colleagues, that plan doesn't work.
Even if it worked years ago, it does not work at all today.
You've got to decide to do something different.
If you're ready to take the next step on your freedom journey, start here: https://www.freedomfounders.com/step-1
