The Pyrite Principle, Part 2: Fool’s Gold in Your Portfolio

We’ve all seen it — the flashy pitch, the glowing testimonials, the promises of massive returns with minimal risk. It sounds incredible. It sparkles like gold.

But often, it’s not gold at all. It’s pyrite — fool’s gold — and many people don’t realize it until it’s too late.

Proverbs 13:11 (NLT) puts it bluntly:“Wealth from get-rich-quick schemes quickly disappears; wealth from hard work grows over time.”

There’s a timeless truth here: real wealth — not just in dollars but in life — is built, not bought. And when it comes to investing, that principle is more relevant than ever.

When Flashy Costs You Everything

The most dangerous time to be dazzled by fool’s gold is when you can least afford to be wrong.

Many people — especially those later in life — don’t have decades to recover from a major financial mistake. That’s why “boring and steady” is often a better investment strategy than “trendy and risky,” particularly when your margin for error is slim.

Before you invest a dollar, remember this: If it sounds too good to be true, it probably is.

Here’s the hard truth: good investments often don’t look flashy. They require patience, consistency, and long-term thinking. They may not make for exciting conversation at the cookout — but they also won’t destroy your retirement.

What Are You Really Investing In?

When we hear “investment,” our minds often go straight to the stock market. And yes, that’s part of it — mutual funds, ETFs, crypto, startups, real estate. But investing is broader than financial markets.

You can invest in:

• Boats, cars, watches, or vacation homes

• Education, degrees, or certifications

• Business ventures or side hustles

• Relationships, mentorships, or career moves

Anything that costs you time, money, energy, or emotional capital is an investment. And the same rule applies: don’t trade something of real value for something that only looks valuable.

5 Questions to Ask Before Any Investment

Whether it’s a stock or a side hustle, pause and evaluate. Hasty decisions are often bad decisions.

Ask yourself:

1. Do I understand what I’m investing in?If you can’t explain it in simple terms, you probably shouldn’t put money into it.

2. Have I vetted the people behind it?Look at their credentials, track record, reviews — and trust your gut.

3. What’s my risk tolerance?Know what you can afford to lose — financially and emotionally.

4. What’s my time horizon?How long are you willing (and able) to let your investment sit before expecting a return?

5. What’s the real return on investment — in time, money, or life energy?ROI isn’t always financial. Some returns are emotional, relational, or spiritual. And some costs are, too.

You Don’t Have to Apologize for Saying No

Let me say this plainly: You don’t owe your resources — your money, your time, your attention — to anyone or anything that offers a bad return. You don’t have to explain yourself for saying “no” to a poor investment.

Life is too short and resources too limited to waste them chasing fool’s gold. Reserve your investment — of any kind — for things and people that are truly worth it.

Final Thought

Gold is quiet. It doesn’t scream for your attention. It sits beneath the surface, waiting for those wise enough to uncover it.

Don’t settle for sparkle. Dig for substance.

Listen here:

https://open.spotify.com/episode/1vJscXd3mgzQYtbzXv3Wvb?si=99KmOEA7TLqMnAClIwBHIQ