Investing for young people, Part Three

Notice we’re not giving advice on how to pick a broker or a stock in these posts. That’s because we want our audience to accumulate some extra cash and get some life experience before jumping in to serious investing.

So, our next topic is geared toward budding entrepreneurs. Starting your own business is the riskiest, most entertaining, scary and exciting way you can think of to make a living. And we’ve found what looks like a great book to give you an overview of the process.

We’re assuming here that you have an abiding passion for making a world-changing product, and an idea for how to do it. Now, “all” you have to do is get going.

Here is where you need the book, “SCALE” by Jeff Hoffman and David Finkel. “Scale” refers to an increase in size, a current useful buzzword and far better in our opinion than the previous old-verb-into-new-verb, “GROW,” as in grow your business.

The full title, Scale: Seven Proven Principles to Grow Your Business and Get Your Life Back, explains why we like it. Further, the first principle the authors being with is “Build a business, not a job.”

Here is our added value: if you don’t want to or can’t build a business, view your job as if it were your own business. This gives you all the commitment and excitement you could want with very little of the risk. Particularly recommended for normally risk-averse women.

This notion applies no matter what your first, second and/or third jobs are. McDonald’s flipping burgers, IBM coding who-knows-what, even the City of Long Beach, pushing brooms or paper. We challenge you to find the excitement there. And you will.

This is what IFO did and didn’t even realize it. As a college dropout, she worked as a receptionist, switchboard operator and accounts receivable clerk for Rees Blow Pipe Mfg. Co.,  a small manufacturer in Berkely, Calif. Doesn’t sound very exciting, does it?

After flunking out of CalBerkeley, due partly to her low grade in Accounting, she went to work at this company. At first, she had no clue what they did or how they did it, but she went into the back where all the equipment they made was assembled. She watched and learned. She also acquired an intuitive grasp of accounting principles that had completely escaped her in her college class. She even learned what a union boss looked like.

Rees’ products were shipped all over the world. It gave her a frisson of excitement as she realized she had become attached to the entire world from her tiny little cubicle by the switchboard. This job lasted less than a year, but she still retains fond memories of the people she worked with.

It didn’t even surprise her when her boyfriend, soon to be DH, called her at the office one day and asked, “How would you like to go to Switzerland?” We can’t remember whether we shrieked for joy at hearing that one of our heart’s dreams was being fulfilled, but we surely felt like doing that. Now, THAT’s scale!

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About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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