Monday, January 12, 2009

Non-financial investments

Talk about investments and most people think stocks, bonds, and mutual funds, plus maybe real estate and commodities like precious metals. Let's call those "financial investments." You buy them with money and you hope that they will eventually return money in the form of interest, dividends, or a profit when you sell it. Financial investments are great, and everybody should have a plan for building a portfolio of them, but there are also non-financial investments, and non-financial investments can often yield a higher return.

I divide non-financial investments into two categories. One kind you buy with money, but get your return not in cash but by avoiding future expenses. The other kind may well pay your return in the form of money, but at last part of your investment is not. source
tagged: investing, energy, extra money, save energy, stockpiling, non-financial

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