There are no risk-free investments in life. But, you can mitigate the risks by diversifying. You can invest in many different things so you don’t go bankrupt if one loses big. Diversifying in relationships decreases the risk of emotional bankruptcy if one relationship ends. It means you invest your time, attention, and heart into a group of people instead of one or two. They are partners, family, coworkers, gym buddies, neighbors, and spiritual communities. The more investment you make in people across all sectors of your life, the more you give. Your relationships grow in substance. You get stronger. You insulate each other from suffering or celebrating alone.
To “buy and hold” means choosing high-quality assets (stocks, real estate) and holding them for 40 years. Through years and decades, ups and downs, you hold on because you commit to a goal, not an individual asset. This strategy produces the highest long-term gains with the lowest risk. Use this strategy in relationships by committing to quality people with a track record of listening, reciprocating, and maturing. Your returns will be peace, security, and love.
Dollar-cost averaging means you invest the same amount monthly regardless of market performance. It guarantees you buy less when share prices are high and more when prices are low. You don’t panic at the news of a market loss. You don’t sell low and re-buy the same thing high when the market recovers. Consistent investment in relationships returns stability and growth. Sporadic investment results in volatility and loss.
Chasing shiny objects that claim never-ending high times bankrupts people. When things appear only to go up, we want to believe they always will. What happens if you redirect emotional investment from your stable relationships to short-term shiny objects? Your spiritual, mental, and emotional reserves get depleted. Using reactive decisions to manage what’s left makes your situation worse.
Opportunity cost is the loss of potential gain from an alternative when you make a choice. For example, in 1997, you bought CarMax instead of Amazon. It’s in hindsight that you see the rarity of an investment opportunity. There is also an opportunity cost to not investing at all. You won’t keep up with inflation. If you don’t invest in anyone, romantic or otherwise, you will not have a social safety net. You won’t get the compounding growth necessary to soften life’s realities.
Commission and bonus structures shape salesperson behavior. They lead to increased persistence, aggressive sales tactics, and fast deal closing. Shallow, short-term relationship bonuses are money, hot bodies, and love bombs. Bernie Madoff said his investors were somewhat to blame because they didn’t dig too deep. If you don’t want to be the victim of a scam, look beyond the bonus.
Beware of hidden fees. They reduce returns. Those paying the most in fees always say they aren’t paying any when you ask. Transactional relationships charge the highest fees. You’ll recognize them as energy drain, loneliness, and constant drama.
Struggling companies issue junk bonds. Like drugs, they pay high yields to compensate for their high risk. But it’s more likely they won’t repay what you put in. In relationships, these are people who will take a bullet to the knee to protect their phone. Compulsive liars, narcissists, and gold diggers will not be returning your investment.
The Madoff whistleblower fed evidence to the SEC for ten years, but they ignored it. You can’t perceive reality or predict cliffs when you’re high on denial. Friends and family are the whistleblowers in relationships. They know what you look and sound like when you’re thriving and happy. Don’t turn away from their insight.
A successful long-term investment strategy is about commitment and managing emotions. The lack of excitement in the flat periods doesn’t dictate the course. A strategy that is susceptible to the influence of competing investments, greed, and instant gratification never works. Build something tangible that can bear the weight of your needs as you age. When your foundation is strong, you can take more creative risks with your life. Society then benefits, and the gains compound.
Song Accompaniment: Lauren Daigle, Hold On To Me
Artwork: The Art of Seth
All Song Accompaniments Playlist – Spotify
All Song Accompaniments Playlist – Apple
Read Next:
The Fear Of Success: How To Overcome Self-Sabotage