Sunday, 9 February 2014

Investing is like water that flows out

Water that flows is constantly renewed with fresh water. Water that doesn't flows will become stale after awhile and the colour will change. Why am i talking about water here? The reason is I think water represents our money.



Some time ago, there was one news reported where people feedback that one of the private swimming pools in a residential unit has not been changed for a very long time. Algae has started to grow in it and the water is no longer clear. It was later found out that the owner was not staying there and had turned off the outlet where the water could flow resulting in the water turning stale.

Money that doesn't flow will also become stale. What I mean is money that you save which is not invested will become stale. We all know that inflation decreases the value of our money. The higher the inflation, the lesser the value of your savings is worth year after year. It is wise to put your money in a place where it can flow. Investing for income creates that flow where your money generates income in terms of dividends from stocks or rental from properties. This flows back to you creating a constantly cash flow for yourself.

Rich people become rich because they know where to put their money. Their money is constantly flowing like fresh water that is always renewed. If you do not let your money flow, it will become stale and worth less and less overtime. Then again, make sure you put your money at the right place. Placing it in the wrong place may lead to drying up. There must be water flowing back as well.

Giving is also be a form where your money can flow. It adds purpose and meaning to what you have. Treat your family or friends for a good meal? Surprise your spouse with something special? Giving back to your parents who have raised you up over the years? Donating for a good cause in society? These are some things which adds value to our money. Creating cash flow will  make you wealthier while giving back will make you a better person. This will certainly make our lives more worthwhile to live. Don't let your money become stale and smelly.

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