The Idea of Money Making Money
What is investing? When one first hears the word they either shudder or give a shrug like who gives a shit? But we all know it’s something we should know and learn about.
I think the best way we can view investing is basically the idea of money making money. Now, I don’t believe this is a natural way of thinking because in our minds we process the idea of money from work. It usually looks like this:
The normal way of making money: Work x Time = Money.
I would assume most all of us think this is the default and normal way of thinking. Who knows why this is? Well, now that you mention it, I have a theory. Humans tend to think within tangible realities, and for the majority of work on this planet is tangible. Whether you are a construction worker or graphic design artist, you create things you can visually see and that produces a tangible result for someone else. There is a certain gratifying feeling to it. Investing is not like this in the slightest. It can usually be broken down like this:
Making money through Investing: Money x Time = Money.
You simply bypass the work completely. I don’t believe were conditioned to think like this, at least I wasn't. Now, one can make the argument that takes work to learn how to invest. And I agree. You can’t be some fool thinking everything is an investment or you’ll be buying shares in Sears and mobile homes in Garden City.
I won't argue the logistics of how much work goes into learning the overall philosophy and/or approach of investing. Nor will I argue where I believe you should invest your money, at least not in this blog post.
I simply want to introduce you to one simple thing. The idea of money making money might be a far-out idea or maybe its right within reach. But if you can understand that investing is simply your money making money over long periods of time, then you will be better off than 99% of the people on this planet…….And yes I just made that stat up.