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INVESTING 101 EDUCATION

3 Ways to Increase your Return on Life

When investors think of value, they usually think about return on investment, or ROI. ROI is calculated using a formula. But in a true sense, ROI is nothing but numbers on a spreadsheet. There’s no true “value” in ROI. All you can ever get out of the final result is another number.

More and more, investors are thinking in terms of ROL, or return on life. Return on life has to do with using money to add value to life; to enhance the actual quality of life. At the end of the day, the way you’re able to live is more indicative of success than how much money you’ve been able to squirrel away. And, while money plays a key part in the abstract “formula” of return on life, it’s not the final result; money is not the goal with ROL.  So what are some of the goals with return on life, and how can you increase ROL?

Closer Personal Relationships

Multiple studies have shown links between close personal relationships and a better quality of life. The University of North Carolina at Chapel Hill reports that social networks rank just as high in importance as diet and exercise. Loneliness has been shown to be a factor in early demise. An OSU study found that improved relationships among teachers, students and parents did more to improve grades in a school in Michigan than an injection of money. It’s clear that close personal relationships add to life quality and longevity.

When you invest with an eye toward ROL, you gain the time to develop close personal relationships with family and friends. You gain the time to spend weekends cheering your kids on from the sidelines of their favorite sport. You gain the time to attend parent-teacher conferences and to be more involved with your child’s academic progress. You gain the ability to take a day off from work on a snow day and spend it in the backyard making snowmen or cooking up your famous chili recipe.

Less Stress

Stress has been called the epidemic of the 21st century. Our forebears surely experienced stress, but perhaps it wasn’t so widespread or so relentless as it is now. Stress leads to an array of negative consequences including chronic headaches and migraines, impaired memory function, reduced fertility, depression and more. The less stress you have in your life, the higher your quality of life; the higher your ROL.

Place the emphasis on return on life instead of return on investment to make your life less stressful and more relaxed. When you’re able to go about your day in a more tranquil state of mind you’ll be able to think more clearly, make better decisions, be in a happier mood and be better able to deal with the obstacles and nuisances that we all encounter on a daily basis.

More Experiences

In a study conducted at San Francisco State University, researchers demonstrated that experiences lead to more happiness and feelings of self-fulfillment. “These findings support an extension of basic need theory, where purchases that increase psychological need satisfaction will produce the greatest well-being,” stated Ryan Howell, assistant professor of psychology at San Francisco State University.

When you focus on creating positive experiences for you and your family through the return on life concept, everyone benefits. You have the chance to bond with your partner and/or children through shared experiences. You create lasting memories that can be enjoyed again and again. You learn more about yourself and your loved ones as you encounter new environments, cultures, and challenges.

3 Ways to Increase your Return on Life

It’s all well and good to talk about leading a stress-free life filled with friends and loved ones, relaxation and entertainment. Few people can sit back and do absolutely nothing to earn money. The secret is to combine your investments with the goals of ROL.  Here are three investment ideas that enable you to simultaneously make money and increase your return on life.

  • Private Money Lending

Private money lending is a passive investment opportunity to make your money work for you. With private money lending, you act as the bank, lending money to developers or companies that use investors’ cash to build, develop or buy needed equipment. At American Real Estate Investments some private money lending projects pay up to 12% returns. All you have to do is provide the funding, then sit back and collect interest payments each month. At the end of the term, typically 12-18 months, you get your principal back. This investment offers a very high return on life because the investor doesn’t play an active role in the project.

  • Turnkey Rentals

Turnkey rentals offer another opportunity to maximize return on life without sacrificing the ability to earn money on investments. In this regard, turnkey rentals are far better than the fixing and flipping model, or the fixing and holding model. When you invest in turnkey single-family rental properties, you reap the benefits of single-family home investments without the hassles of being a hands-on landlord. Turnkey rentals come to the investor ready to rent; in some cases, the tenant is already in place. The property manager handles the day-to-day operations, leaving the investor free to enjoy an increased return on life.

  • Vacation Rentals

Vacation rentals have the potential to offer that rare combination of a passive landlord experience with the bonus of a “free” vacation experience for you and your loved ones. When you invest in a fractional ownership turnkey rental in a place like Belize, you get a high return on investment plus a high return on life. This kind of passive investment affords you the opportunity to maximize all three of the aforementioned positive benefits of ROL; build closer personal relationships, de-stress and enjoy memorable experiences with your family and friends.

What do you think of the concept of increasing your return on life without sacrificing return on investment? Would you like to enhance your quality of life with one of the three investment opportunities mentioned above? All it takes to get started is an email or phone call to American Real Estate Investments. Alternatively, download the free Passive Income Starter Kit to learn more about how to leverage your investments to gain a better quality of life for you and your family.