What is the ROI (return on investment) of a gym membership?
You may have spoken to an employee of the gym and heard
“This is an investment in your health, not just an expense”.
If this is true, then there must be a return on the time and money invested. If there isn’t, then it wasn’t a really good investment.
The answer is simple- BUT more fun to grasp by asking another question about basketball.
Q- What is the ROI of a basketball in your hands?
A- For most of us, probably little to nothing. We aren’t basketball players. We don’t know how to use a basketball on a court. At best, some of us may have made a few free throws high school.
NOW
Q- What is the ROI of a basketball in LeBron James’ hands?
A- Millions and Millions of dollars.
The basketball (investment) didn’t change, the player did.
Access to equipment and programs isn’t going to provide a return on its own. A person with great execution or expert guidance, however, can now leverage the investment and hedge it in their favor for a return that far outmatches the cost of investing.
Happy hedge-funding.
