$100 | Invest in Yourself or The Market?

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invest-in-yourself-versus-the-market

Today, I want to post an what I believe is an intriguing proposition.

If I gave you $100, would you be able to make more of it by investing it into yourself (i.e. more education, starting a small side business) versus investing that $100 in the market.

Some guidelines:

  1. You must spend the $100 investing in yourself within 1 month assuming you go with the first option.
  2. You must invest the $100 and leave it there for 10 years assuming you go with the second option.
  3. No, you can’t just save it in your piggy bank or pay debt debt. You must spend it in option 1 or 2.

Which do you think you would get a higher return on?

The Warrior Family Approach

Before I even continue, I will straight up acknowledge and admit to the fact that we are investing in ourselves right now (BIG TIME).

We are spending lots of time and money in building our side businesses with the hope they grow to something bigger. We are investing in ourselves versus the market. 

So, why are we doing this instead of dumping money into the market?

We see more freedom, pleasure and opportunity via investing in ourselves. We feel that our efforts will result in a higher net return that will pay off in the next 2-3 years. It’s a high risk, but, in our eyes, worth the risk.

Worth the Risk?

For us, it is. For many of our friends and family, not at all.

We have lived on very little for so long as we have spent more on experiences than possessions. Living this way makes investing in opportunities not as difficult as it may be for others.

We can name at least 10 friends who think we are crazy for spending so much time, energy and money on these ventures. They will ALWAYS work a 9-5 and that works for them. It doesn’t work for us.

Is it worth the risk for you? That’s only a question you can answer for yourself.

What Would You Do with the $100?

At the beginning, I asked what you would do. Invest in yourself or the market. So, in the comments, tell me which and why you chose that option? You can even kill my approach in the comments. ;)

6 Responses to $100 | Invest in Yourself or The Market?

  1. A person with an entrepreneurial state of mind will think investing in themselves will be the better option many times. :) Hey, if you believe in yourself, go for it! But I believe there will eventually be a balance found where you invest some in each direction – some in yourself to keep your interests going, and as the fruits of those investments pay off, you’ll then take some of those fruits and invest in long term funds for retirement.

  2. I would absolutely invest the money into “us” rather than the market. Having done this for a bit over a year now, I can say that the benefits far outweigh what the market has done, especially after yesterday. :-) Investing in yourself, I’m not sure how you could lose, provided you don’t give up. Great post, Mr. Warrior.

  3. I would invest it in “us” by buying myself some business cards or dropping money on web hosting for my site.

    Very interesting question!

  4. Mel says:

    That’s actually really difficult, because the lazy side of me says just put it in the market. Assuming an 8% compounding interest rate (monthly), in 10 years it would amount to $221.96. On the flip side, investing that $100 in say, a notary certificate and offering that service on the side for $10 a document… You’d only need to notarize 23 things to beat that payback over 10 years – it doesn’t seem that difficult to get work less than 3 times a year. I guess I’d invest in myself.

  5. I guess I’d say I’d invest it in myself, only because I think $100 would have a greater affect in that area than it would in my stock holdings.

  6. zenc says:

    Considering most people in the US currently make 30,000/year and labour is going down because of jobs being outsourced, replaced by IT, machines etc. I would invest in #Google, #Apple and have a nice profit after 10 years.

    Did you ever wonder why 9/10 startups close after the first year?
    Because they too, thought the investment in yourself war better than the market, well stats show they usually are wrong.

    Maybe you are the next media sensation or The_Simple_Dollar guy.
    But if your not you have invest a nice part of your lifetime, your energy and talents into something that turned out to be nothing.

    But hey maybe I am a realist/pessimist type of guy :) Keep up the good work on your debt and emergency fund, you are doing above average on some stats if we believe #financialsamurai http://bit.ly/1ixhPiv

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