Originally posted by Aquatic
Hey I didn't know you were a teacher. What is your subject and class?
The subject is multiple and the class is fourth.
Anyway, that's a good point/concept: opportunity cost. That's why I want to invest in real estate maybe stocks (big maybe, I won't jump in with more than a thous or two any time soon) because I feel like every year that I don't own a house or stocks, which both grow a lot of money, if done right, I'm losing out on opportunity.
Right but do yourself a favor and don't just jump into anything though, try to wait for the right one. How does one know which is the "right one?" That is the oh so wonderful concept I mentioned above that in my view cannot be bought or taught. Anytime you try to stick a criteria on it, it just hits some snag, exception or goodness knows what. Around half the time you have to be contrarian to make money anyway. (<--that right there is an example of how trying to make rules to define the opportunities just sucks.)
I'll have to resort to an analogy and just apologize to Midwinter later.8)
Hitting a pitched baseball relates well to finding a good opportunity. I mentioned earlier about how most people seldom will risk money on an opportunity because they are so invested in debt service. Think of the pitch as the opportunity and the swing as the cost of attempting to get a hit or financial return.
The pitching machine will give you as many pitches as you want thrown. So life gives opportunities as well. They really aren't obscure, hard to find or once in a lifetime. Most of them are sitting right in front of your face and whizzing right past your nose.
The issue isn't the pitches, the issue is the swings and the hits. It costs to swing. Many people who fixate on the now (take now, pay later), or who pretend to hate money while constantly complaining about it and working for it, or who simply do not have the right mindset (I can't succeed) do not get to swing or if they do, it is so seldom that they are unlikely to get a hit.
Think about folks with this mentality, they get to swing at maybe one or two pitches in their whole lives. They expect a hit, possibly a homerun. When it doesn't occur then they conclude they simply weren't lucky, didn't hit life's lotto, or sadder still that the entire system is set up and rigged to screw the little guy.
Those who aren't servicing debt, who save to invest regularly, they get to swing more often and after a while they realize a couple things. First hitting a baseball really isn't that hard. Second they don't have to swing at every pitch, they can wait for the best or the most right pitch for their hitting style. What is the best for your "hitting style?" You don't really know until you've had a few swings. Realize though that most people only take a couple swings in their entire lifetime. They treat hitting the ball like scratching a lotto ticket. You have to get more than a couple swings in before can even make adjustments to your hitting style. It can't be a one shot deal, but something ongoing.
Waiting for the right pitch requires yet another level of patience on top of the original deferred gratification that allowed up to save and get up to swing. However once you learn to do it, your batting average can even start to go up to well above average.(Thank goodness life is only a pitching machine and not a major league pitcher)
Once you get patient enough though you not only hit regularly you get excited about the game. Your whole perception
about hitting has changed. You can't wait to have pitches come past you, find the right one, and hit it out of sight. They aren't all homers, but there are plenty of singles, doubles to keep life comfortable and the occasional triple, homerun or goodness knows what to spin wonderful stories about. They sound like once in a lifetime hits but they really aren't. You just got to swing well and swing often.