What's The Best Investment You Can Make? – Legends Report

By Jatinder Singh, Associate Partner, Lighthouse International

True legends understand that along with their physical and emotional well-being, their financial well-being is crucial to succeed in life. They are aware of how it’s an enabler and so choose to spend and invest in the right areas. We’re often willing to put thousands and even millions of pounds into property or stocks, but as one of the world’s greatest investors Warren Buffet describes, investing in the biggest asset we have can bring the greatest rewards…

“Investing in yourself is the best thing you can do. Anything that improves your own talents; nobody can tax it or take it away from you. They can run up huge deficits and the dollar can become worth far less. You can have all kinds of things happen. But if you’ve got talent yourself, and you’ve maximized your talent, you’ve got a tremendous asset that can return ten-fold.”

However, that said we can often find ourselves in a situation where we don’t have enough money to invest in ourselves or any other area, so how do we change that? It’s perhaps a position many people can relate to and is so common that there is a phenomena used to describe the situation…

Parkinsons’s Law

Parkinson’s law says that whatever you earn, you will spend. Therefore even if you earn more, you will spend this extra amount and remain in your current position! 

You can probably see now why even people who earn 6 or 7 figure amounts still say that they don’t have enough money. As they earn more they buy more and get used to their improved lifestyle, meaning they often don’t become financially independent despite earning a lot more than the average person! However, the good news is you can do something about this. 🙂

The Compounding Factor – Saving a Little Adds Up!

So how do you get around Parkinson’s Law? Quite simply, you save and invest more, particularly when you earn extra income! Now that may seem easier said than done, however, the key is to start small because the power of compounding adds up! Here’s renowned author and coach Tony Robbins to explain about a UPS employee who invested 20% of his $14,000 salary and when he retired had over $70 Million!

Our Unconscious Spending Habits

The key idea behind developing a regular savings habit, especially with small amounts, is that we learn about our own unconscious spending habits. Spending a few pounds here and there won’t mean much at the time. However, it all adds up and once we get the bigger picture of where our money goes we can start to recognise patterns that hold us back and make changes. Again it’s about educating yourself and becoming more aware which are skills you gain from investing time, money and effort in learning. 

Legends Invest In Themselves

True legends know that ultimately the biggest asset they have is not a house or stock in a company. They know that their ability to produce that wealth comes first. Their skills, their knowledge and their network are the most important things they can invest in because if they lost it all tomorrow they could build it back up again (as happens many times).

“Investing in yourself is the best investment you will ever make. it will not only improve your life, it will improve the lives of all those around you.”

– Robin Sharma (author)

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