Too many first time investors will put their money into something that they have no interest in simply because they believe it will make them the most money. However, whilst such investments may be highly profitable for some people, they may require a certain amount of expertise and passion in order to reap the benefits. It’s this philosophy that causes many first time investors to put their money into businesses that flop soon after or assets that they then can’t sell. Here are some reasons to invest in something you believe in.
You’ll be more knowledgeable
Here is where many first-time gold investors fail (as this article Why Gold Has Utterly Failed As A ‘Safe Haven’ explains. They assume that gold will always be valuable, end up buying from a dodgy bullion dealer and then end up with gold they can’t sell. If you’re interested in the thing you’re investing in, you’re more likely to have done your research. You can then better determine the good investments from the bad ones.
Local investments can often be good as you may already know your community’s needs and therefore be able to make a better judgement. You may be able to tell if a wind farm is likely to be protested against or if a shop is likely to be a huge hit in your area.
It will be more rewarding
By investing in something you care about, you know that your money is going to a good cause. Invest in an obscure business or asset that doesn’t mean much to you and it may feel like you’re simply setting up an ISA and waiting to get your return. If it’s an investment such as property that requires you to get heavily involved, you may do so with more love and care – certain renovations may be less of a chore and you may be happier to provide for your tenants needs.
You’ll be more inclined to think ethically
As this article The Role of Ethics in Business Management explains, ethics can play a big part in success. Being an investor for a dodgy company or for a controversial asset/service (e.g. a gambling business, nazi gold) could tarnish your reputation. There are also investment methods that can be ethically questionable that you’re more likely to make an investor focused on the money and not the cause. This could include renting a property that isn’t done up to proper standards or making promises involving stocks and shares and not keeping to them.
You’ll be more eager to keep tabs on investor news
If you’re interested in the thing you’re investing in, you’ll be more likely to keep up to date with investor news within that area, not because you need to but because you want to. You may be able to more quickly spot when a better investment comes up or see a way in which you raise the appreciation of your current investment. There are plenty of sites such as this one and publications to help you do this.
It could give you useful connections
Investing in things that you’re passionate about could make you more inclined to build relationships with the people involved. This could be useful if an investment is closely related to your business. Going back to local investments, you may end up meeting with important members of your community that could provide a means of cross promotion. Even in property investment, something as simple as getting to know your tenants might provide you with new links. They may even be able to help with your investment by partaking in DIY projects that add to the value of your property. Invest in something you have no interest in and you won’t want to associate with the people involved in it, missing out on this important networking.