There is Life in Your Money


Money is LifeDo you know there is life in your money? Money is not just a piece of commodity paper. It is a form of life in itself. It can be described as seed.

Sometimes I heard some of my investing friends lamenting they are too busy, cannot find the time to look into investing. In this regard, I believe my friends have not matured into the arena of what investment is all about. Investing is about letting money work for you, instead of working for money. The ultimate objective of investing is to achieve financial freedom one day in the future where you will have enough passive income to substantiate your livelihood. At that time you will harvest money as fruits hanging on the tree for your daily supplies and enjoyment. In short your money is like a seed. It can be eaten, stored up or planted into good soil. The choice is entire yours.

Money Eaten

Seeds can be eaten but will not be digested. The creator has designed it in such a way that seeds do have solid coat to protect the inner part being digested by the consuming creature. So that the seed will be passed out and brought to a different place for pollination purposes. At the end it will create another cycle of life in a new further grounding.

In the same way, money can be spent in the way of purchase of good and services, giving out as charitable activities, etc. It will never disappear but rather create another useful cycle in another hand or purpose. The benefit of that money comes, however, to the owner only for a short while.

Money Stored Up

Seeds can be stored up on a dry condition so that when the right moment of planting season comes, it can be grounded into the soil. But it cannot be stored up for too long though. It will be eventually  useless while in a rotten condition due to time decay. In the same way, if we store up money for a long period of time in the ground of our backyard, say, 20-30 years, the value of our money will be gone forever by either devaluation or invalidation because of changes in currency notes under different governmental regime.

Money should be at least saved up in the banks to receive steady flow of compounded interest. This saved up is only as good as preserving its value, however. Saving in the bank is only good for a short period of time, say 1-3 years, even in the form of CD or fixed deposit. If it stays there for too long, say 20-30 years, it will also be considered as good as stored up in a jar buried behind our backyard. The interest value of CD or fixed deposit can never over take the inflation rate of the market in a long run.

Therefore money placed in the bank can never be considered as a form of investment. It can only be considered as value preservation. Even then, it is only for a short term too. The only thing we can do to keep our money alive and active is to sow into good soil.

Money Planted

Like a seed, the only way to keep it useful is to plant into good soil. It will flourish and multiply into next cycle of life.  To keep our money alive, we have to invest into good vehicle.

Planting Money

There are people who claimed to be busy and have no time to invest have not understand fully what investment really is. Investment is really for people who are busy.  Investment is like planting a seed into the ground. It only takes time and season to grow and mature. There is nothing much a farmer can do but to wait for it to grow through the passage of time.

There are people who think they need time to watch their portfolio intensively are actually trading instead of investing. Trading is creating active income, investing is aiming for passive income. There’s a great disparity among the two. If whoever keeps busy while investing, he is probably doing it the wrong way.  He would probably be losing money either way. Even legendary forex speculator George Soros advocates less work should be done while we do financial investment. He said, “If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.”

What a farmer can do to ensure a good harvest is the initial work. He waits for the right season, then cultivates the soil and plants in the seed. After which, his job is finished. He would let nature take over and do the rest of the job.  Investing has a similar nature. We watch for the right reason to invest our money. When the right time comes, we identify which channel to invest, and finally create a portfolio for the season, our job is done. Nothing much we can do but sit aside and let time passage grow our money.  The most we can do is to have some minor adjustment like a farmer might do to have some farm checking and fertilizing.

Opportunity Presented in 2017

As we started off the year 2017, I believe the season for planting our seeds have arrived. For busy people, the easiest way of investment is through mutual fund or unit trust. For Asian, or Malaysia in particular, I strongly recommend Fundsupermart.com.my. In this investing instrument, it carries more the 200 funds locally and globally. Its funds include wide variety of choices and facilitate versatile investment such as equities, commodities, energies, agricultural, bond, money markets etc.  There’s lot more skill to play around in terms of flexibility through switching in order to enhance higher return. And the best part is that these switching can be done free of charge too if you have learned its skill on its platform.  (You can write to me personally if you want to learn more on this)

A rare opportunity like this may not be long, it might probably only take a year or two.  As we all know the US Bull is getting too old. Anything can happen when the Fed raised its interest rate to, say 1.25 or 1.75. If the market is hitting hot and glowing where common folks like taxi drivers are all jumping in stock market by then, the party is most probably over any time.

I believe our money has life in it. It’s the matter of planting into the right soil on the right season. It will grow, mature and multiply for our favor. And I believe the time is now, do you believe so?  I have planted my seeds through Fundsupermart right after US presidential election because I saw opportunities unveiling itself then. And I saw my “seeds” have grown into 5-7% shortly after weeks or merely a month then. Like a farmer, I did minor adjustment to my portfolio to fertilize it or remove some unwanted weeds.

Our money has life in it. It should not be stood idle, or store up doing nothing. The more we procrastinate, the more we delay our opportunity. Don’t you think so? But mind you, do not come in too late when we are about to leave. As the famous saying of Warren Buffet put it, “Be greedy when people are fearful, but be fearful when people are greedy.”

 

Disclaimer: The author expresses his view based on his own learning experiences and share with the basis of freedom of speech. He does not affiliate with any investing brokerage firm including Fundsupermart.com

 

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9 thoughts on “There is Life in Your Money

    1. Thanks. Appreciate you like the concept. Yes there are both bad time and good time for investing. However, there are available vehicles in Fundsupermart to cater both good time and bad time though. In the past, during bad time, I used to take my capital out from stock markets and placed in FD for temporary parking in order to avoid stormy weather. But now, since I came to know Fundsupermart, I don’t have to take the trouble to do that anymore.

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