This excerpt is from Tim Ferriss’ blog. Tim is the author of the best-selling Four Hour Workweek and frequents seminars and conventions, speaking and presenting as well as watching and listening. I value his insights highly and think his words are worth sharing without submitting you to the filter of my mind. So here it is… Tim Ferriss on Investing.

Tim Ferriss

In the 100+ comments on the aforementioned post (some of the commenters manage 9-digit funds–hundreds of millions of dollars), definitions of “investing” range from “gambling” to “asset allocation.” In other words — “investing” as a term is so overused as to have become meaningless.

I propose that we define investment as a broad concept and then separate it out. First, the broad definition:

Investing = “Allocating resources to improve quality of life.”

This applies to financial investment as much as it does time management and all other resources. How much would your behavior and results change is you just replaced the concept of “time management” with “time investment” in your head?

Using this definition of investment, I would not chase the moving target of pure ROI (after all, there is always a more speculative vehicle with potential higher gains), but choose the vehicles that offers the greatest ROI with the least insomnia. More cash with constant sweat in the palms is hereby defined as a poor “investment.”

You can view the Tim’s full post on his blog.

Do you agree with his definition of investing? What are some ways you think you can personally improve how you invest your time, money, or attention?