From time to time, this kind of question pops up in my inbox: How can I get started investing in stocks and mutual funds that are risk-free and have guaranteed high rates of return?
Of course that makes me laugh hysterically, not only because there is no such thing as a risk-free investment let alone one with a guaranteed high rate of return, but more because someone thinks I am an investment advisor. I am simply not qualified nor licensed to advise anyone on traditional Wall Street, stock market type of investing. But that’s not to say I don’t have some advice for them.
My investment advice is unconventional, perhaps, but it makes so much sense, I think you’re going to be amazed. When looking at investments, many people disregard one of the best and easiest places to invest their money—their own debt.
First, let’s agree that the reason anyone wants to invest is to increase their net worth by making their money grow. There are two ways to do that. 1) You can increase your assets or 2) decrease your liabilities.