09 March, 2010

You Plus One - A Risky Investment

We've all heard the term, "You Plus One". Those three words that we see on invitations that are a harsh reminder to those of us without the "plus one" - those of you that are just you. It'd be silly of me not to take a stab at a saying with a numerical value already attached to its original meaning, so here goes!

First, let's just think about this in terms of numbers in the most simplistic way possible. If "you plus one" signifies you and a loved one, then a full cycle of a relationship would be something like this: you + one - one = just you. Add one and minus one for every partnership you attempt and fail and ultimately, it leads you back to just you (clearly, I'm not counting the one - your forever and always).

Then what the hell are we doing? All this work and you're right back to where you started, it's like some sort of awkward one-step dance, you tire yourself out just to end up exactly where you started - looking like a fool.

Luckily, it's not that simple. "You plus one" is a phrase that can tie relationships to the unpredictable investment world in terms of acquiring debt to invest.

When you borrow money to invest in something, you want to be sure that the interest on your debt is lower than your expected return. So, if borrowing that $1 is costing you 12 cents, you sure as hell better make sure whatever you invest in is going to make you more than 12 cents.

Now let's bring it back to real life. That "plus one" you get when you enter into a relationship is a debt. You're borrowing this person to invest in yourself. Because let's face it, when a breakup occurs, you lose a lot more than the physical presence of that person. You lose security, comfort, a sense a happiness - you lose more than just the "one". And those things, my friends, are the interest of that debt, the payment you have to make for the opportunity of having that person in your life.

So, what makes that debt worth it? It's worth it when the profits of the investment outweighs the temporary pain. For this to be a successful debt-investment type deal, that "plus one" in your life has to help you grow. Maybe they teach you new wonderful things. Or maybe they teach you that you're worth more than you originally thought. When you come out of that relationship a better person than you were when you entered it, that's when profits outweigh lost. That's when the debt was worth the interest.

But like I said, a relationship is an investment and an investment comes with risks. You won't always come out on top. Sometimes you'll fail miserably. Sometimes that person leaves you broken and shattered, not any better (maybe a little worse) than you were when it all began. That's a failed investment - a poor business choice - something we will all fall victim to. When it comes down to it, you have to hope that more of your investments turn out in profit than lost. And ultimately, at the end of the string of failed relationships, you have to hope that it's you - better than your were before - debt free.