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Financial Jiu Jitsu will teach you how to gain leverage in the real world, step by step, until you are confident you no longer need more.

Negotiation As An Investment Strategy

Negotiation As An Investment Strategy

World markets are uncertain.  They're pretty much the opposite of death and taxes. People advise that you will earn a positive return over a long period of time investing in world markets, but even that is not guaranteed.  What if the United States gets taken over by our Canadian overlords?  What if the US dollar collapses?  There are an infinite number of possibilities floating that could lead to a net loss (or total loss) over the course of many years.  This is why investing long term in markets is a subtle form of gambling.  It's a far cry from day trading or putting chips on a felt table, but there is risk of loss involved, and wherever there is risk of loss and you're making a bet, well, that's called gambling.

Whether it's money in the bank or money on the table, risk is risk. Ever heard of FDIC insurance?  That was part of the New Deal so consumers are protected partially from loss since the banks gamble with your money.

Whether it's money in the bank or money on the table, risk is risk. Ever heard of FDIC insurance?  That was part of the New Deal so consumers are protected partially from loss since the banks gamble with your money.

Much in the same way investing in markets is a little bit like gambling, negotiation in job interviews, annual performance reviews, and with your peers has aspects of gambling too.  The difference here is that you're betting on yourself, and your investment is your confidence in what you're negotiating for, and your knowledge that either qualifies you to negotiate or gives you an edge.  Think of your tactics in negotiation the same way that you think of your stocks to pick, rental properties to invest in, or whatever your nest egg may be.  The better you are at negotiating, the higher returns that is going to yield for your annual income, and consequentially your cash investments down the line.

Consider walking into your bosses office for a performance review, intending to push for a 10% pay increase.  You're betting on your ability to convince said superior that you are either deserving of the pay increase or have indispensable knowledge that the company can't do without.  Either way, you're subtly expressing that there is a possibility that you will leave the company if your request is not met or compromised, even though that's rarely something you should say explicitly (unless you have a better offer letter in hand).

The choices you make in negotiation have a direct impact on your income.  I ask: how is that not investing?  The choices you make in the markets and with your investments have a direct impact on your return.  In one situation your earning is better, and in the other situation your returns are better.  Either way, they translate to the bottom line of your net worth increasing.  Any decision you make that increases your net worth could be considered an investment decision (although that's not what I would tell the police if I were to steal a Ferrari).

Something to ponder on.

Something to ponder on.

My First and Second Experiences with Turo

My First and Second Experiences with Turo

Reflections from Turkey day

Reflections from Turkey day