What is the best investment we can make?
The more and more we learn about finance, we can realize that success in the financial industry is all about how we behave with money. Our behavior towards money can tell a lot about our financial future. It is necessary for an investor to have a good relationship with money. If in case the relationship breaks up, then we may be in deep trouble. if we improve our behavior towards money then our financial future is safe but there is one big problem, behavior cannot be taught. We may learn thousands of books and read hundreds of articles on behavioral finance but it’s of no use because behavior is something which cannot be transferred or taught. Investors must realize that behavior cannot be thought but we can learn by ourselves. Behavioral learning takes times and it involves habits formation in dealing with money on an everyday basis. We have to be patient during our habit’s formation process because it’s tough. In simple words, investors have to develop good habits in dealing with money on day to day basis which leads to good and stable behavior, which in turn leads to great financial future. In other words, we simply can say that the best investment you can make in your life is in improving “your behavior”.
Invest in Yourself – Behaviour is all about habits formation
Investing in forming good behavior pays the best interests. Investors who think of making fortune in the stock market must first invest in himself first rather than directly going and putting money in the market.
Investing in yourself includes various dimensions, such as improving our behavior by habits formation, improving our financial knowledge and having emotional stability during adverse periods in markets. Whenever someone asks Warren Buffet, what is the best investment to make ? he would without thinking for the seconds says, ” invest in yourself”. In his 20s, Warren took a public speaking class because he was fearful of public speaking and Warren says that, taking a public speaking class and investing time in those classes made him a good speaker.
The investor thinks that investing is all about studying finance and numbers but that is not true. Investing is a multidimensional dice. An investor should invest their time in reading books from other areas also such as architect, biology, phycology, philosophy, etc to improve their behavior.
How to invest in Yourself
Have a learning mindset
Nothing can substitute the power of knowledge. Through knowledge, we get financial wisdom. Financial wisdom leads to financial success. Investors should always strive to learn new things, new ideas from various environments and that’s how knowledge is turned into wisdom. We cannot acquire financial wisdom if we only learn things related to only finance. All great investors have a great learning mindset, they have the mindset to learn new things on a day to day basis.
Having a growth mindset
Growth mindset is necessary for an investor in their financial journey. Growing is not all about reading tons of books everyday but rather applying what we learned in day to day practices. We don’t need many investing books to transform our thinking. Investor during the investing journey, will make lots of mistakes and it is necessary to acknowledge our mistakes and learn from our mistakes and make new mistakes, that is real growth mindset. Learning from our mistakes is good for investors but learning from other people mistakes is true financial wisdom.
When investors invest their precious time in learning new things by having a growth mindset in their background, that is the true meaning of investing in yourself. All great investors spend lots of their time in improving their skills and knowledge and not solely on making money in the market because they know the secret that, money flows to those who invest in themselves.