I’ve Reached a Turning Point—It’s Not Just About ROI, It’s About This

I’m fed up. For years now. Everywhere I turn, investors seem obsessed with return on investment (ROI). Or worse still, they talk about internal rate of return (IRR), which only one out of 100 investors understands fully.
Some individuals resort to risky investments disguised as investments for this very reason, yet we have never witnessed these strategies build sustainable wealth; more often than not they result in significant financial loss.
Since I began writing for BiggerPockets, my goal has been to educate investors on the difference between investing and speculating. Here’s a breakdown of each concept.
Investing: When your principal is generally protected and there’s an opportunity for profit. Speculating: When there is no protection at all between your capital and potential profits. Simply put, high-stakes speculation can be extremely exciting while lower risk investing tends to be duller options.
Books and movies alike explore speculation. That is because such tales of hope-defeated odds exhilaratingly bring joy. We all dream of becoming that rare exception who succeeds despite high risks and low odds: “Maybe it will work for me; perhaps I am the exception!”
Reject Hollywood fantasies about wealth – real wealth is far less glamorous and dramatic than depictions in fairytales.
Have you ever considered what true wealth means? It doesn’t consist of Rolexes and exotic sports cars or mansions on hills; rather it lies somewhere else entirely.
Real Wealth = Assets with Reliable Cash Flow
Unfortunately, true wealth will not come from obsessively checking IRRs and real estate returns, or monitoring individual stock prices hourly.
If you want a quick way to generate high returns, lottery tickets offer some of the highest returns around; but be wary – lottery ticket purchases often lead to bankruptcy! They should never be seen as viable investment strategies! Ask any gambling addict!