Getting Ahead and Staying Ahead
Some people are already wealthy enough that they can invest like crazy. And, if only half of their investments go anywhere, they are the types who will still end up getting richer. Wealth goes to wealth, as they say. But for those of you who are out to build wealth (such as by investing in Russian oil), there is a fine line between being a risk-conscious investor who is open to taking on some risks, and just being a fool who gambles away his entire fortune. The trick is to figure out what you really need and how to keep just enough for it in reserve.
Then, with the rest of what you possess, you can take a few chances. If you know you need $1,000, and you make $1,500, you obviously have a little something to work with above and beyond what you actually need. When you invest in oil wells, you need to have a good sum saved up, after all. And you also need to have a fairly long time horizon. Consider how long it can take to set up an oil well. You don't just go out and toss one up over a weekend. Oil wells are not tree houses.
So if your time horizon is short, you may want to forgo investing in oil wells for awhile. For instance, if you occasionally need to get a cash advance just to make it between paychecks, you might have a problem with the time horizons and cash requirements needed for oil investing. While everybody occasionally gets into some kind of trouble, if you are the kind of person who never seems to be ahead of the game, then you just might not be ready to invest yet. If you work to get on track, though, you might be surprised how quickly you can change the life you've been leading.