This is a short YouTube discussion (hosts Liz Lamond and Sablo Gill) arguing that the best investment in 2021 is investing in yourself. They contrast directly investing saved cash (example: saving 10% of a $50,000 income → $5,000 which would need a 100% return to become $10,000) with using that money to buy skills/education that can increase earning power (potentially raising income from $50k to $100k). They cite the idea "you are your biggest asset," reference a book (authors Caleb Gilliams and Jason Lo) and promote the book "Becoming a Banker" and the infinite banking concept, with a link in the video description.
Questions this video answers
September 22, 2021.
Earning $50,000 per year.
10% of income.
$5,000.
$10,000.
Chapters
Because your skills continue to improve. So as you continue to improve your knowledge, your understanding and the skills that are valuable, particularly in these times when things are changing rapidly.
What is the best investment in 2021? It's probably not what you would expect. I'm here with my colleague Sablo Gill. I'm Liz Lamond, and we are here today to talk about the best thing that you can do with your money in 2021. Now, Sablo, there is so much change in the market right now, it's crazy. Everybody's pre predicting either the sky is going to fall or things are going to continue to bloom. So in that kind of environment, what is the best thing that people can invest in right now?
Oh, Liz, this is one of the most commonly asked questions that we get asked is, hey, where should I invest my money? And I think the best way to answer that question is it's not what you're going to buy, it's how are you going to buy it? There's this one step before you actually take your cash and go buy the crypto or real estate or stock market or whatever it is where you want to put your money. There's one important step that you have to get, you have to complete before you invest. And that important step is to invest in yourself. You cannot get a better rate of return investing into anything without you've invested in your own self.
So let's work through it like a case study of that sample. So if we say that somebody is earning $50,000 as income for the year and they're able to save 10% of that now, that's hard for some people to do, but let's just say they can save 10% of. If they were able to go and double that saving amount of $5,000, they would end up with $10,000 at the end of the year. But where do people are able to double their investment? Doesn't really. It's a very rare thing to be able to do. So the chances are it's going to be much lower than that number. So you're talking about investing in yourself. How does that translate into making more than, say, five to $10,000?
So you can take your $5,000 and do exactly what Liz said and hope to get a 100% rate of return on investment, which may not even happen. It's a hope, but let's just say that even happens. You have $5,000 you invested, now you have $10,000. Awesome. But that's all you have. That's one way to do it. The other way to do it is you can take that $5,000 and invest in yourself to learn a new skill, a new skill that'll increase your ability to increase your cash flow. Because now you have a new skill, you can provide more value to people around you. And people are willing to pay for the value that you have now. So that'll certainly increase your income from 50k to 100k if you added another skill that people want. Both are possible. It's just one has a better outcome than the other. And it's not just about today, it's about obtaining this for long term.
It's important to understand that the investment in yourself is not just in the short term, but it's in the long term as well. So you have the opportunity to grow your net worth because your skills continue to improve. So as you continue to improve your knowledge, your understanding and the skills that are valuable, particularly in these times when things are changing rapidly, the need to adapt and change. Many industries have changed. The places where perhaps people were working before has shifted. So investing in yourself in areas where you can continue to grow your value is the thing that's going to make the biggest difference overall in terms of you increasing your income over time.
There's a book right behind you. It's called the Ant Asset. It's authored by one of our colleagues in the U.S. caleb Gilliams and Jason Lo. They both co authored the book and Asset for Canadians. And in that book, Caleb says an important point. He says that you are your biggest asset. So investing in yourself will produce the most return in terms of cash flow for yourself, for your family, for your business.
What we teach every day, Sablo, is for people to invest in themselves and to educate themselves on how to take back control of their own financial education. It's really, really important to understand that you need to have the control of your financial future, not just for now, but for yourself and future generations and for your whole family. And so taking charge of that, the first step in that is educating yourself.
So in our firm at S& in Financial, we talk about the process of becoming a banker. And it all starts by investing in yourself. By taking the time to read the book called Becoming youg're a Banker. Unlock the infinite banking concept so that you can find value in controlling the function called banking. And discover a way that will help you keep your money in your family, in your business for the things that you are already spending cash on over the things that you're going to the bank and borrowing their money. And financing it that way. So again, investing in yourself is the best way. Invest in yourself to learn new skill. Invest in yourself to find a financial peace of mind using the process of becoming a banker. So to do that, get a copy of the book. The link is underneath the video description.
