Sunday, February 28, 2016

What is the best investment for a young person to make?

Sandra asks me what I think the best investment is for a young person.  I'm assuming she means someone just entering adulthood.

What do you think? Am I right?

Watch the video: 


Hey guys It’s Dave Barnett once again from . I got a question from Sandra who simply asks what kind of investments would I recommend for people that are young, like 18 years old and you know what thanks Sandra for the question it’s a great question.

You know there’s two different ways you can go down this path and one sort of voice of reason might say that a person who’s only 18 years old has the whole life ahead of them. So they should put as much money as possible to really secure you know, sort of fixed income product that grow very slowly because they have such a long planning horizon by the time they get to sixty-five or whatever. They’ll have accumulated wealth I’ll be really well off the problem with that kind of thinking. I believe is that number one you’re wasting huge amount of opportunity that a young person has an eighteen years old has.

If anyone knows anyone who’s young person just getting out of High School or college, please please share this message. The opportunity is that you’re at a point your life we have very little responsibility and the risk of the save now and wait for later plan is that there might not be a later you know. I unfortunately in my own life have all kinds of people around me, who are in their sixties who are falling ill with different health conditions and it really makes you understand your own mortality. And the risk of being alive you know, things happen. So the whole idea that you need to work hard your whole life and then at some point in the future, you’re finally gong to be able to rest, relax and enjoy the fruits of your labor. I think is flawed thinking I think people need to enjoy their life through their life so that they have no regrets at any given point back to the opportunity for the young.

Right now I have two children that I’m responsible for about, I’ve got a home mortgage, I have all kinds of responsibilities in my life. So I have to be careful as a forty-year-old, what sort of risks I take because I have to make sure that I’m able to pay my bills and meet my obligations and those obligations are important. We’re talking about my kids. An eighteen-year-old likely is not going to have a mortgage, they’re not going to have children and maybe they’re still able to live in their parent’s basement for example and if they haven’t gone to college or university and go on a huge amount of student loan debt, they also don’t have the burden of debt, so in my opinion one of these people should definitely get into business. Get into a business will learn through doing and you know what with the lack of wisdom and experience at a young person has in all like hood the business will fail and that’s okay. 

That’s how people learn you know when you’re learning to walk you keep falling down as a child and eventually get it right and I think that the point in a person’s life where you can most afford to fail and have the failure will mean the fewest repercussions for you is when you are that young adults. 18 years old you can get out there do something crazy, get in over your head in a lot of different ways, fail and learn some tremendous lessons and the advantage of course is that in failing at that young age or even succeeding you’re going to learn how to get into business and if it’s a successful business will be a little leverage, the efforts of other people, employees. Grown a business, learn how to manage a business. And that’s going to set the person up not for a comfortable retirement in 45 years. It’s going to set them out for an exciting active life of business ownership and with that hopefully increased earning in the ability to enjoy life to its fullest throughout the course of Life. Taking holidays, vacations, owning you know different property, having an RV, all that kind of stuff is all fruit from the labor of getting into business and taking the risk so Sandra that’s my advice for someone who’s young like 18 years old is not to be cautious in any respect but you get into business and learn by doing and just knowing that whatever happens there’s going to be a tremendous amount of information gathered, a tremendous amount of knowledge and wisdom and that even if it doesn’t work it’s ok anyway. 

If you disagree or if you have another idea, please share in the comments below and if you are older in life and you’re not ready to take on some risks because of the responsibilities you have and you want to get into business, not through starting one up and experimenting but you want a sure thing and you want to buy a mature successful profitable business then you should be checking out my online course where it’s actually a full day over nine hours of video tutorials and a workbook on how to go out and find the process of how to purchase ad analyze and price a business that you can buy.

Anyway thanks and we’ll join you next time! You made it to the end of the video that’s great. Don’t forget visit Sign up for my email list it’s right down here under the welcome video thanks and we’ll see you next time.

The Invest Local Book blog is all about small business, franchises, local investing, home economics, small business systems and borrowing money for your business. It's full of great content and I look forward to seeing your feedback.  Sign up for my mailing list and don't miss a thing! [CLICK NOW]

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