What have you been investing in?
What are you betting on?
It should be you.
The general population has recently felt a crunch on their main asset classes (both housing and equities) and a shift has occurred leaving a lot of people feeling out of sorts. Many business owners were counting on these assets to build for retirement while others used their home equity as a source of income or spent beyond their means.
Your money where your mouth is
The important question to ask yourself is 'how have I spent my money?' Actions speak louder than words so you can expect your debts to read loud and clear whether you've spent your money wisely or not. If you drew a pie chart displaying your debts would the biggest slice represent a money making investment such as your college education or business loan? Or are you making your biggest payments on a vacation you took last year?
I saw a financial analyst give a speech recently who illustrated the semantic difference between the words 'spending' and 'investing'. He described a situation where if two people asked him to borrow money, he'd much rather service a good debt for a business owner who was investing in himself (his business) versus someone who wanted to spend the money to purchase things. His focus was on the reliability of his investment, 'Will this borrowed money be put to use in such a way that I can guarantee it's return?'
Your greatest money making asset is you and your business. Are you investing in yourself?
