The No. 1 Investment Everyone Should Make This Year

Let’s talk about the number one investment that everyone should be making.

Ok guys, so I guess this blog is going to be a little corny because you probably have heard it before. But look, I think that the number one investment that you can make this year is investing in yourself. This is why I think that: The market is at an all-time high, which something I have said in other blogs. Real estate prices have surpassed the levels of 2006, the stock market is at an all-time high, and things are very expensive. There are not many opportunities out there anymore. Trust me when I say this, because I travel around the country a lot. I go to a lot of conferences and events, a lot of real estate related stuff.

Also, a lot of people are starting to talk about a lack of inventory and not enough supply—that prices are going up and rents are increasing. All of these things make me a little bit uneasy. I’m not really happy because of it, but if you watch CNBC, a lot of the earnings reports are coming out and they’ve all met expectations. The companies are doing well; the economy is in good shape.

Why I Think Everyone Should Invest in Themselves Right Now

Personally, though, my gut instinct is telling me that something is not right. I’m not saying I’m Nostradamus here and I can predict the future by any means, but something is not sitting right with me.

I’m saying that because of December last year, when the stock market pulled back 10 percent or whatever it was. I started to see a lot of fear in a lot of investors. The first quarter of this year was tough for our company, because a lot of people were on the sidelines. They didn’t want to invest, and they didn’t want to buy real estate. And that was just after a small decline, even though the market has boomed for the last 10 years. The fact that a small stock market decline can cause fear among investors, where everyone freezes, is very interesting to me. These are things that you need to be careful of.

So, why do I say invest in yourself? Because information equals power. The more you know, the more powerful you are. I know it’s corny, but it is the truth. I have been very tunnel-visioned when it comes to real estate investing. It’s my bread and butter. I love real estate, and it is my passion. It’s all I have done, but a lot of other investment vehicles out there can offer some fantastic returns.

I think that as real estate investors, you have to remember the word “investor.” An investor can invest in stocks, oil, and gas, and in other businesses, right? So, I think that you should expand your horizons. You should know more investment vehicles out there than just one. You should look at potentially diversifying.

They say that the average millionaire has five different streams of income: real estate, royalties, dividends, and business. These are other vehicles to generate passive income or lump sum capital gains or cash.

So, invest in yourself. Attend various events, network with people who are reputable in their respective industry. Your network equals your net worth. You can’t stop learning. And I love the saying, “If you’re not green and growing, you’re ripe and rotting.”

There’s always something to learn. Be the dumbest guy in the room; that’s something I always say. I’m not the smartest guy out there. I quit school at a very young age and have no formal education, but I’ve always brushed shoulders with people who are where I want to be. Then, eventually you pick up a few things.

Something that I’m doing this year is still doing some deals in the Midwest. I think there are a lot of opportunities here. The market hasn’t fully recovered, there are a lot of foreclosures, and I truly feel like a kid in a candy store here. So, check out the Midwest!

But invest in yourself. Buy a book on stocks or anything, and expand your horizons. Then, just wait and see what the market is going to do or where it’s going to go and then you can pull the trigger, invest, and make some great gains.

Where do you think the market is headed? Are you investing in yourself?

Comment below!

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.