Return on NonInvestment

There is a return on non-investment. The return on non-investment is 100%. The vast majority of people do not understand this, or think this is all wrong. If I do not spend $1,000 today on some gadget, I can invest that money in income producing assets. Some people think one needs to be a millionaire to be an owner of a business. Individuals that save in their 401(k)'s most likely have a stock component which translates into ownership of hundreds of businesses with thousands of employees.

One can invest in as little as $50 per month with some online brokerages. The question then becomes, why do so few people do it? There are a few things that distract one from achieving financial goals. These include knowledge, attitude, and patience.

Knowledge is the most important piece. Without it, the investor will be lost and not know where they are going. Knowledge is built upon by understanding what they are purchasing in their 401(k). Knowledge is power in the investment world.

The next piece is attitude. If one does not have a good attitude towards future business growth, they will simply stay a spendthrift or invest 100% in gold pieces.

The last piece is patience. Not many people have the patience to invest $50 a month to see a return years later. That is why one should increase their savings to as much as they can.

The return on non-investment concept is very important especially if one is considering the sales and retail gimmicks going today. If something is 20% off that doesn't mean one should buy it. One still has to trade 80% of their cash for that item. If they do not buy the product, the return on non-investment is 100%.

Long Term Investment Mindset

Hello! Welcome to my blog. I will be sharing my views on investments and general life. From when I was a teenager, I was hooked on understanding how the world works. I started reading business books at a young age, including books about money and the stock market. I traded stocks when I was a teenager. I moved on from that into other strategies when I became wiser. My passion in life is investments. I love understanding what is going on and how I can do better. I have been buying stocks since a young age, and continue to do so on monthly basis.

The first concept to know is what an investment is. An investment is basically a cash outlay where one seeks a return at a later date. It is delaying today's spending for tomorrow. It is about buying or starting a business where one will receive cash in the future. Investments are about returns of capital.

The largest and most important return that an individual or family can receive is savings. The return on non investment is 100%. Instead of spending $1,000 on a new computer, that cash could be saved for other purposes. When one decides to save that $1,000, they receive a cash return of 100%. There are many people around the world that do not understand this, which is why this blog is sorely needed.

Next, one needs to find where this excess cash should be used. They can either spend it on discretionary items or save it and invest. Today there are a myriad of investment options that one can easily get confused. If an individual has spent their lifetime learning one trade, they may not like to learn how to manage their own money. They must however, because there are thousands and thousands of brokerages and financial advisers out there with different styles and recommendations. The investor must understand what their financial adviser explains to them.  

The strategy that I have specifically embarked upon and practice today is buying and holding. Buying and holding has been around for a very long time, hundreds of years. I believe this strategy is far better than any other I have encountered. The next concept to learn is what type of investments are best and how we can achieve superior returns.