It's this time of year when most people sit down and prepare their resolutions for 2009. Here are my recommendations for investments you might consider:
1) Invest into yourself.
Knowledge is extremely powerful, assuming that you apply it in your life. Invest in education. Use what you learn to improve your investing returns. Over the years, I've invested well over $100,000 in books, information products, mastermind groups, training and coaching. I always try to extract the lessons learned and apply them in my life. These little investments have compounded dramatically throughout the last few years.
More importantly, nothing can take the knowledge you acquire away. A slow economy or recession has zero impact on this investment. Your knowledge cannot be stolen in some massive Ponzi Scheme. It's not impacted by the stock market. It is the safest and most profitable investment you'll ever make.
2) Paying down debt.
I realize that paying down debt isn't very sexy. However, it's very safe. Take some time to study all of the recent financial failures. Study both business and personal financial failure. You'll find that in 99% of the failures, excessive debt was the cause. By paying down debt, you'll decrease the odds of financial failure. You also move closer to financial independence. Start by paying off cars, credit cards, and personal loans. Once these are paid off, then focus on paying off your mortgage. The good news is that your investment returns are guaranteed when you pay off debt!
3) Real Estate.
Most people are afraid of real estate right now. I certainly understand why. But consider how your life would be right now had you bought 10 rental properties during the boom and paid them off. Sure the value of your properties would have dropped over the last year or so. However, your monthly rental income would continue to arrive like clockwork. In 2009, buy investment properties with the intention of paying them off quickly. The lower home prices available in today's market actually help enormously in this process.You can buy great homes for pennies on the dollar. This savings in price creates higher monthly cash-flow. Use the increased cash-flow to pay off the mortgage on the property. Once the property is debt-free, the economy will have zero impact on your finances.
4) A mutual fund or stock in a good company.
Just kidding. You have zero control over a mutual fund or stock in a publicly traded company. See my recent post on why "control" is so important by clicking here.
5) Your own "side" business
Starting your own "side" business might be the best thing you can do in 2009. One business can lead to several million dollars of wealth. Don't quit your day job. Start your "side" business in your free time. Use the income generated to build additional wealth. Invest the money back into your side business, into your debt pay down program, or into real estate. Don't use the income generated by your side business to go buy a new car! Use the "side" business income to compound your wealth.
Yes, starting your own business is risky. However, the more you invest in yourself (See number 1 above), the less risky your own business becomes. Refer back to the last few Income for Life newsletters for the best "side" businesses you can launch. Pay close attention to the "9 Qualities of a Great Side Business" as summarized in the November newsletter.
Rob Minton
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