Wealth Building Wednesdays: Expsenses versus Investments

One of the most important skills that someone who desires to build wealth must learn is how to distinguish between an expense and investment. The super-wealthy don’t spend money on expenses. Even when it looks like they are spending frivolously, they are investing in making themselves more money.

An Expense

An expense is something you spend money on that will not grow your bank account. It is a purchase that may be a necessity or it feels good in the moment but ultimately is not going to profit you.

If you spend $600 on a purse, and you are spending it because you want to impress people, that’s an expense. It’s not going to make you money. It’s not going to help you get closer to your goals. It’s not even going to impress the people you want to impress.

Buying a t-shirt or a purse or a pair of shoes that promotes someone else’s brand or carries their logo is an expense. The only thing it’s going to do is add dollars to their wallet, not yours.

Truly wealthy people do not buy things to impress other people. They buy them for their durability or because they open doors of opportunity for them to make more money, connect them to people who can open up opportunities for them, or clear out the obstacles that stand between them and the places they want to be in life.

An Investment

Investments are things that will give you back a return on the money you spent. They will help you make more of whatever you want in life.

Buying a house is an investment. It will grow in value over time if you tend and care for it. It can be leveraged to create a passive stream of rental income.

Buying a car is an investment in gaining back your time because it shortens the time it takes for you to travel and connect with people. As I mentioned in the first Time Management Tuesday, time is your most valuable currency that is spent to gain every other kind of wealth available. It can also be leveraged to make money transporting other people to places.

Buying a t-shirt with the Project FED logo on it when you are getting paid to promote those products is a smart investment. It’s a conversation starter and it turns you into a walking billboard for the brand you are promoting.

Project FED: A Smart Investment

Project FED offers an opportunity for you to invest your time spreading the word about its products and services in exchange for 15% profit off whatever it is you sell. While it costs you nothing to set up the affiliate account and begin sharing the links, there is going to be an opportunity cost of your time. You’re going to need to invest about 5-10 hours a week if you want to be successful at making money.

But it’s not an expense. It’s an investment. Not only can it help you bring in extra money, learning how to market and promote these products will set you up for future career success. And, you’ll be able to feel good about the work you do because you know every dollar you make is putting a dollar in the pockets of orphans in Nigeria.

Ecommerce is one of the hottest job markets out there, and being able to stay that you were in charge of taking a start-up ecommerce brand (yours) from making $0 in revenue to 100x or 1000x or whatever amount you are able to increase it proves your ability to do the work they need you to do. The skills you’ll develop in social media marketing, copywriting, sales, and networking just from studying the content on this blog will make you a far more valuable and valued employee, too.

Join Project FED

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