Saving…The Safest Way To Double Your Money
Double or nothing…the famous last words of an unlucky gambler…or investor. The whole world, it seems, has this obsession with doubling their money…from late night infomercials promising 500% returns, to Wall Street gurus writing articles on the “next exploding stock”. Even among the so-called “entrepreneur camp” there is this thought, by some, that money just multiplies like bunny rabbits with every venture. Even with the economy at a low point and individuals employing more conservative spending practices, there are still plenty of people out there who are willing to buy in to this whole “double your money” scheme that is being peddled on every corner.
In fact, a recent article that made the rounds on LinkedIn, claimed that one of the top mistakes that entrepreneurs make is in expecting or promising unrealistic return on investments. It went on to say that claiming something was a “safe investment” often was the biggest downfall to returns. If each investor or entrepreneur would assume loss or, at best, to break even, then most would be much more patient and examining of any opportunity that came along…resulting in less frivolous spending and more accountability for those seeking to raise funds.
But isn’t part of being an entrepreneur taking risks and not being afraid to jump when you see an opportunity? Yes, absolutely! But that does not mean that every opportunity that comes along is worth investing in or will pay back in double dividends. Sometimes being able to say no is what allows you to maintain a place of being able to say yes when the time…or venture…is right.
I like what one humor writer and cartoonist, name Frank McKinney Hubbard, said in the early 1900’s on this subject. “The safest way to double your money is to fold it over once and put it in your pocket.” While saving is not always the right answer, it seems that society has largely decided that it isn’t even an option anymore. Even more surprising, is that many like to overlook the fact that most successful investors establish a savings plan before deciding to branch out into risky investment choices! Why? Because even the best of investments don’t come with a guarantee and won’t always be liquid enough to pay the bills.
Saving money is also about discipline and appreciation…two things that great investors and entrepreneurs always need more of. It takes stamina and restraint to say no to the myriad of things that come along, pressuring you to invest in them. Then, once you have made the effort to save money, there is a new appreciation of that money. People who have worked long and hard to save will be much more selective on anything that they do choose to give that money to. And, in the end, they will appreciate any return on their savings investment that comes along as well.
While some might firmly disagree, I believe that the road to wealth truly begins with saving money. Nearly every self-made success story that I have ever heard began with someone working hard, spending less so they could save, and then using those savings to do something great with. And I don’t think, even for a minute, that everyone of those people weren’t tempted to spend or invest in something along the way. Entrepreneur Steve Jobs, for example, understood that not doing things had as much value in his life and took as much strength to accomplish, at times, than the things he did do. He said, “I’m actually as proud of the things we haven’t done as the things I have done. Innovation is saying no to 1,000 things.”
So, as you go through your life today, make it a point to be as proud of the money you save and the things that you say no to as you are of the investments you make and the money you spend. Be brave enough to persevere and patient enough to withhold instant gratification for the chance at future greatness. Be smart…make it a point to save…and watch your money double.
I want more stuff like this!