Feb 13, 2017
#64: Your potential is unlimited.
I realize that's the type of cliche that you normally find embossed
in cursive script on the side of coffee mugs. It's trite and
impersonal and overused.
But it's also true.
Your potential to earn and grow is limitless. But it's not free.
You need to invest time and money into developing your
potential.
Your time and money are limited, though, and you could also choose
to invest in market-based assets, like stocks, bonds or real
estate.
How do you make that decision?
Are you going to invest in yourself? Or the market? Or both -- and
in what proportion?
How do you make these choices?
When you're buying a few shares of a total stock market index fund,
you have a generally clear idea of what you're getting. You've seen
the historic returns. You can predict, to a reasonable degree, the
consequences of that investment over a multi-decade span.
But when you're investing in yourself -- e.g. learning a new skill,
developing a side business, or taking a class -- you can't rely on
the same formulas or models. There's no chart mapping the historic
returns.
Financial capital is easy to track. Human capital is harder to
quantify -- but potentially more rewarding.
Can you compare investing in assets vs. investing in yourself?
How can you make a smarter decision about your own path?
On today's podcast, I talk to Michael Kitces -- a financial
planner, entrepreneur, and all-around smart guy -- about this
million-dollar decision.
Find more helpful information at http://affordanything.com/episode64