Let’s say you are a nurse and you have $10,000 saved up to invest. You can spend a lot of time and effort trying to beat the market and get a 15-20% annual return. That means you would get a $1,500-2,000 return that first year. Again, this is after you beat out all of the money managers on Wall Street that get big bucks to do this stuff for a living.
But if you took that $10,000 and went to nurse practitioner school, you will probably be able to increase your annual income by at least $10,000. That is a 100% return. That is a pretty conservative salary increase from going from a nurse to a nurse practitioner. Not only that, you would be getting that $10,000 return every year and it will probably rise over time as you gain experience.
So you can spend the time and money to learn how to invest in stocks or you can invest it in advancing your career. Do you now see which one gets a better return?
Where Investing in Stocks Fits in
You will clearly make more money and a better return if you invest in your own earning power. But, once you start saving that money and getting income every month, you will want that money to work for you. This is where investing in stocks can be very powerful.
You want to be careful and not rely on investment returns to make you rich quick or to give you the lifestyle you always wanted. What you really want is to invest as much as you can on the front end of your life so that you can enjoy more of it later on in life.
Common Mistake in Stock Investing
A common mistake people make when wanting to learn about investing is they want to get rich quick. Sometimes they want to do it for a living instead of their day jobs. Some succeed in doing this, but it is very, very rare.
The danger here is that more people fail at making a living from investing in stocks than succeed. It is much better to invest in your own career, advance, make more income and have surplus to then invest.