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Thursday, April 21, 2005

What is investing?

 

The act of committing (money or capital) in order to gain
financial return.


In other words, it means putting your money to work for you.

Since young, we were taught to go to school to get a degree
and work in a big company. And by doing that, our future will
be assured.

I don't think you believe that anymore, otherwise you won't be
reading this. :)

Basically we are trading time for money. If you want more money,
it's simple. Work more hours! But there is a limit to how many
hours we can work. Let's say you can work all day long, but
what's the use if you don't have the leisure time to enjoy
your money?

So, we need to find a way to maximize our earning potential
without hoping for a pay raise (if there is any), work
overtime or find a second job.

You must have heard people talking about investing in stocks,
bonds, mutual funds, real estate, or having a business.
Those are just the vehicles of investment.

Every vehicles have their own risk attached to them. It is
a must to know the rules of each game before you can play
well in it.

The point is that no matter what method you choose to invest,
the goal is always to keep your money busy working for you.

Smart investor does not simply throw his or her money at
any opportunities. Only calculated risk that has been
thoroughly analyzed will be considered. You need to learn how
to "see" high probability investments.

So why you bother investing?

Don't tell me you want more money. I can help you with that
by giving you $1 and you instantly have $1 more money. :)

Most people invest because they want to increase their personal
freedom, sense of security, and having the ability to
afford the things they want in life.

How about you?

Now list down quickly what you really want if money is not
an issue. Just write what came into your mind. Then, just
circle the top 10.

Keep this list in the safe place. You'll need it later.

That's for today.

And you will definitely don't want to miss tomorrow
because Albert Einstein got something to share.

Go for profit$!

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