5 Steps To Successfully Turn Your Passion Into An Investment
The urge to dive straight into trying to turn your passion into an investment could be irresistible—and harmful to your pocket—unless you have time and money to spare. It's easy to think that just because you know a lot about your passion, whether it's horseracing, cars, sailing or something else, that investing in it should involve a set of straightforward questions that you already know the answers to.
But unless you prepare in advance and think carefully about how you will pursue an investment in it, you could end up with big bills and little else. However, if you do approach such an investment in the right way, including weighing up the pros and cons and getting the right advice, you could have a rewarding time. Here are some things to think about if you want to make that happen:
1/5 Take a long-term view
Whatever it is you have a passion for will require time and money if you want to take it forward and make it a bigger part of your life. Buying and keeping a racehorse, investing in classic cars or art or setting up a social enterprise aren’t pursuits that you can pick up and put down at will just because you’re bored. You will only get out what you put in. Overnight results rarely happen.
2/5 Get your due diligence right
Even if you think you know everything there is to know about your passion, unless you decide to make it your full-time occupation—at which point, it is arguably no longer a hobby or passion. You will undoubtedly need the help of a professional—someone who is in that world every day—to keep you informed about your investment and the developments in that particular field. But there are plenty of shysters out there who will take your money and give poor value. Make sure you’re connecting with the right people.
3/5 Aim for the best quality you can afford
When collecting anything, try to choose quality over something slightly below par, even if that means delaying an investment because the opportunity is not quite right. You will enjoy it more, rather than thinking: “I preferred the other horse/yacht/picture. I wish I had waited”.
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4/5 Get involved
Don’t just hand your money over to a professional adviser and pay for them to have fun. Learn all you can about your investment. Expand your knowledge. Understand the professional skill involved. For example, go to the racetrack to watch your horse train or enhance your sailing qualifications. You will enjoy your investment far more.
5/5 Enjoy it
Have fun. Chances if you already have a passion, you’re doing that already—but make sure it’s something you want to do, not something you do only because you can afford it. It’s likely to be a long-term investment that you can’t get out of easily, so you’re wasting your time if you’re not enjoying it.