It's all about perspective!

in #palnet5 years ago

I was talking with a guy at work about perspective, and I ran the following idea by him.

Imagine that I could guarantee you a 10% return on investment after 1 year. That sounds pretty amazing to me since banks are paying little to nothing in interest, and most investments with that high of a return are a bit shady. But just for this illustration, let's assume I can guarantee 10%.

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Image Source

Scenario #1 - The first man invests $1,000,000.

Obviously, any who has 1 million dollars lying around is either great with money or a crook. Sure, there are some other options as well, but let's just keep things simple.

So this man comes into my office and plops down his 1 million dollars. He brought it in one of the metal suitcases you see in the movies. And by the way, he was accompanied by a bodyguard.

We sign the paperwork, and I promise to return to him $1,100,000 in 365 days. Just amazing right - a return of $100,000.

Now that is the kind of investment I would like to make.

Scenario #2 - The second man invests $10,000.

The second man would not be considered rich by most people. He works hard to provide for his family, and he has saved up money for several years to reach his goal of $10,000.

He comes into my office and plops down $10,000. He did not bring it in a briefcase, but rather an overstuffed bank envelope containing hundred dollar bills. Gotta love a crisp Ben Franklin!

We sign the paperwork and in 365 days, I promise to give him $11,000.

Scenario #3 - The third man invests $10.

The last man to take me up on my offer drops in my office unannounced. He pulls out a $10 bill form his wallet and slaps in on my desk. We sign some papers and in 365 days, I will return $11 to the man.

Which man benefited the most?

I will get right to the chase and provide you with the correct answer (in my opinion). Each man equally benefited. As promised, I will provide a 10% ROI (guaranteed).

It looks like the first man makes out like a bandit. A return of $100,000 is not shabby (at least to me). I would even be happy with making $1,000 like the second man. But there is something that gets me when I think about the third man.

He only makes $1 off of this investment. But then again I am reminded that he received the 10% back that each of the other men received. The difference? He was not able to bring as much to the table as the other men, but he received the same return on his investment.

Final Thought


I think I am like most people. I want big results and nice returns even when I cannot bring much to the table in the form of an investment.

I forget that a 10% return on $100 is still a 10% return.

I sometimes pass on an investment that is slow and steady because I prefer quick results. I sometimes pass on an investment when I don't have much to invest.

This applies to:

  • meeting a savings goal (rainy day fun)
  • building up my Steem Power
  • building connections through various personal and professional networks
  • improve my soft skill and increasing my knowledge
  • building my tribe

All of the above (and an even longer list), can be accomplished by making steady returns on our investment - time, money, and/or resources.

I want to hear from you:

  1. Would you like a guaranteed 10% ROI?
  2. Do you feel the same way if you could only invest $10 or $100?
  3. What "small" investment to you want to make in the next year?

Thanks for stopping by!
@SumatraNate

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Guaranteed? Yeah. I mean, I'd probably keep some savings there. But only if I trusted you that it was guaranteed. What in this world is guaranteed? Trine offers about 10% and the money is going to a project I'd support. So, also, how are YOU getting the 10%.

Nothing is as simple as hypotheticals.

Another question is, how much work does it take to get the money? Citibank was offering $400 if you deposit $15k for 2 months, which is better than 10%, but when all was said and done they made so many "mistakes" that I spent hours on the phone with them to get my money out and back. Maybe it was worth it, but it definitely wasn't passive income.

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Hey @improv! All of your points are great. I was providing a hypothetical situation to oversimplify a real world situation. I would have a lot of question too as this would seem to good to be true.

One of my thoughts is that we are willing to go after a return on investment if we have a lot to invest. There are a lot of people that have come and gone (for a variety of reasons). And once the "dream" started crashing, they left instead of continuing to invest with the little that they did.

Thanks for stopping by. I appreciate your perspective.

Totally. I think one of the big things that dipping your toe into investing really opens one's eyes to is that you can't ever catch up to the rich folks, because they can make all the same investments you can.

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Slowly and stedy i am increased my steem through the activities. But regarding the in yerms of fiat investment i am in loss in steem as i brought when it was high to buy. Lol

Posted using Partiko Android

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