The three giants of investing are investing in real estate, investing in business and investing in stocks. Recently, my wife and I took a vacation to Aruba. In Aruba, the shopping area is separated into two distinct parts. When we visited the first part, we found an amazing gelato shop. In the second part, we found a Baskin-Robbins ice cream store and a frozen yogurt store. We discovered that the three best frozen treats are accessible from Palm Beach.
Which one you choose is really a matter of personal preference. Now, we ended up choosing all three, but my wife’s favorite was definitely the gelato. In order, we decided we enjoyed gelato the most, then ice cream, and we enjoyed frozen yogurt the least.
I tell this story because it relates so well to the three giants of investing. Gelato is investing in real estate, ice cream is investing in business, and frozen yogurt is investing in the stock market. My wife and I have done all three, but we definitely prefer real estate and business over the stock market. You will probably like one better than the others too. So, I recommend trying out two. You will never know which one you prefer until you try them all. So, what are the frozen treats of investing?
Investing in real estate is the gelato of investing.
Real estate investing is my favorite form of investing. It’s active, gets you involved and is one of the easiest to understand and start in. I believe that real estate is the best investment for the average Joe. As far as how to make money, real estate investing is weighted with huge advantages and knowing those advantages can give you keen insight into becoming a better real estate investor and accumulating the wealth you need to be financially free. Donald Trump states, “Real estate is at the core of almost every business, and it’s certainly at the core of most people’s wealth. In order to build your wealth and improve your business smarts, you need to know about real estate.” I completely agree. The point of real estate investing is so that you can start to be financially free.
Investing in business is the ice cream of investing.
As a serial entrepreneur, I’ve owned many businesses over the years—a real estate management company, national hair cutting franchise and several non-profits, to name a few. Starting a business can be scary because there are so many things to balance all at one time. But starting a business can also be one of the most worthwhile endeavors you’ll ever take on. Andrew Carnegie said, “I want to spend the first half of my life making money and the second half of my life giving it all away.” Carnegie succeeded at that statement. He built an amazing business and was able to reach his life’s goals. The richest of the rich are business owners.
Investing in stocks is the frozen yogurt of investing.
There is something innately scary about the stock market. The options can seem infinite, and the risk appears steep. The terminology alone takes a while to learn. In general, stock and bonds are the key components to the stock market, and knowing the difference is important when learning about trading. Stocks are an equity security that represents ownership in a corporation and claim on part of the corporation’s assets and earnings. Bonds are a debt security in which an investor loans money to an entity for a defined period of time at a variable or fixed interest rate. There is a great deal to learn when dealing with the stock market. Speaking with a stock broker is always a good first step to understanding the stock market.
Just like in choosing your favorite frozen treat, choosing your favorite form of investing is personal preference. You may already be dipping into one or two of these giants of investing, or you may have not yet tried any of them. Either way, is there a frozen treat of investing would you like to try?