A problem many of my clients face is that they would like to invest, but today's financial markets are overvalued. They don't want to earn "3%" on a bond. They don't want a 1.8% dividend yield on stocks. And property prices are now high enough that very few properties actually cash flow.
So what's a man to do?
Well this is why I have had people focus inward on their personal lives and finances. Paying off your credit card is the exact same thing as investing, but pays you 14% and with no risk. Investing $1,000 worth of home repairs today will save you $3,000 in emergency crisis repairs tomorrow. Going back to school or perhaps getting an online certification may cost you $2,000 in tuition and fees, but it will increase your lifetime earnings by $250,000. Even doing the $300's worth of scheduled maintenance on your car can save you thousands in future towing costs and emergency repairs.
It may not be sexy or glamorous like investing in the stock market or crypto-currencies, but it's the ho-hum, boring doldrums of personal financial management that provide rates of return EASILY above 100%, 200%, even 500%. And over the course of your life, those savings add up.
But if there's one investment that provides the highest rate of return (aside from the book Worthless), it is a tool set.
Which tool set?
Well, for starters I'd recommend this one:
But any tool set that has enough socket wrenches, regular wrenches, and screw drivers that you can do some basic maintenance on your car or home will suffice.
The point is regardless of which tool set you get (unless it's a really crappy one) is that if you can manage just one minor car repair, three oil changes, a computer repair, or just one house repair, you've already earned the money back you spent on the tool set, which is a 100% rate of return. And any future repairs you can do in the future will continue to add to that return, which is once again, a LOT more than the .00004% you're earning on your savings account. Even more than what the stock market returns on an annual basis.
The only problem this investment has is that it's for men only. I wish women could invest in this investment, but despite great strides in trying to achieve equality for women, they're banned from doing their own auto repair, home repair, and computer repair. I wish it was different, but the oppressive, sexist patriarchy prevents women from getting underneath a car, buying oil, roofing, sheet rocking, mudding, taping, or rotating tires.
But don't worry. I think in the future, the day will come women will achieve TRUE equality to men. In the meantime if you'd be kind enough to make all your online purchases through my Amazon affiliate program, I sure would appreciate it.
That's some serious tools porn.
ReplyDeleteHi Aaron,
ReplyDeleteMy dad left some serious tools when he died, I’m learning how to use them. (Fiftymumble-year-old female.)
A stupid question. I buy quite a bit of "stuff" on Amazon. Depriving them of some revenue and directing it to you suits me. Is buying from Amazon via our affiliate program as easy as hitting the button in your post, then shopping/buying? Or is there some other "clicks" one has to take. Thanks, and keep up the good work!
ReplyDeleteGet some small tools too. Fix a non-apple Computer once, gets you ~150% ROI right then and there. Also makes ur computrrslast waay longer
ReplyDeleteSears has some serious tool sales. Not made in US anymore but good quality none the less. Watch for sales. I Bought this last month for $368 w/ free shipping https://www.sears.com/craftsman-52-inch-10-drawer-soft-close-ball/p-00958651000P?plpSellerId=Sears&prdNo=1&blockNo=1&blockType=G1
ReplyDeleteYou need a proper socket set to work on your car beyond changing oil. $30 should be more than enough for one at Walmart or Harbor Freight. Rounding off a bolt because you didn't have the right size, depth, or extension can be a lot more expensive. Also pick up a short steel pipe for ornery fasteners.
ReplyDeletei see what you're saying but the investment does not scale in the same way stocks do. I only have a finite amount of time to work in a day and finite clients. Otherwise, I would just buy dozens of tool sets and get rich in a year.
ReplyDeleteThe tool set you linked to is crap but your article is correct. If a person knows how to use tools you can do a lot of things. There is a ton of information on youtube if you have a basic knowledge of tools you can fix a lot of things. Even if you buy a $100 tool to fix a $100 problem you break even. Next time you use the tool you save a lot. Third time you are doing great!
ReplyDeleteEven if you just break even you are ahead because you fixed it yourself.
In response to Moritz Kramer, www.ifixit dot com is a source for tools and vids
ReplyDeleteregarding repair of small electronic devices.
I take exception to the "men's only" line.
ReplyDeleteThough I'm sure it was a man who decided to call the thing that controls how the electric window in your car goes up and down a "regulator."
Best price on the labor to have one installed was almost $250. The part was 92, and I needed some Torx drivers I didn't have. (I splurged and bought $15 worth of drivers, because half of my Philips bits are scattered over the back yard.)
So call it a $200 return on a $15 investment...
The only tool addition I would add is a circular saw. If you master it you can do just about anything involving wood working with it around your house. They're cheap, compact, and effective. However you need to RESPECT it. They're dangerous as all hell. Single biggest ROI tool I've gotten to date. I bought a used contractor grade one on ebay for the price of a new consumer grade one.
ReplyDeleteThx anon. YouTube served me just fine til now, but imma Bookmark that
ReplyDeleteI would strongly recommend that you NOT buy a crap tool set like the one pictured. From experience (not mechanical growing up to professional mechanic today) I can tell you that those tools will round off the heads of bolts, causing much dismay and further costs. They will fail. Buy a good set immediately. Spend a couple hundred bucks at Sears (not Harbor Freight). The only tools that are worth buying at Harbor Freight are the ones that you will only use once or twice, ever, and only when you know what you are doing so that you can evaluate correctly whether they will do the job for you.
ReplyDeleteI started with a crap tool set like the one pictured when I was about twenty. Trying to work on my 1971 Dodge Challenger I rounded off bolts and broke tools. Finally got so frustrated that I threw the whole set into the trash and bought a Sears set. Never looked back. Now (but I am a professional) my toolbox is filled with Craftsman, Snap On, and Matco. I don't recommend the latter two to the average Joe because they are way too expensive for the occasional job.
The sets I would recommend are called the Sears Mechanics Tool Sets. They make them in different sizes and prices.
I'd use your Amazon affiliate links if you would set them up for people who are outside the US. We use sites like amazon.co.uk, amazon.de, amazon.es.
ReplyDeleteThere is a way to get an Amazon button that will auto-redirect to the appropriate Amazon site, and you would also need to set up an account with the overseas sites, but it could significantly increase your commissions.
Says nobody with any skin in the game. Lots and lots of value stocks that pay great dividends. Market has been on a tear lately. Must better than 1.8%. Learn some basic math and teach yourself how to invest. As for tools, my ROI is greater than when I hire a professional as opposed to an amateur.
ReplyDelete