Wealth Secrets
Investing & Working, why is it important to understand the Difference?
Indeed, it's immensely important to understand this because such knowledge as this is what keeps the rich where they are and keeps the poor where they are too!
"More than just understanding them, applying them in your life is equally very important and it takes courage and discipline to make the effort that's needed to get things going on this lane"
So, you need to understand
how WORK works,
how investment works and
How you can bring the two of them together to create wealth for yourself.
So, we are looking at a wealth formula in this thread!
Working without investing and investing without working.. Is it even possible?
I know that when I say work, it's as though it's for only poor people and when I say investment, it seems as though it's for the richest. But indeed, one cannot really work without the other.
When you are working, you are investing TIME & ENERGY into something. You are developing and building something.
The nature of what you are building is what changes and it's the INGREDIENT that determines WHETHER OR NOT YOUR WORK IS AN INVESTMENT!
Hence, all works are INVESTMENTS
But
All Investments are not Work
Kinda confusing right but I will explain it in a bit!
Understanding Work Better
Work is the one we are very conversant with. Almost all students study in schools so they can graduate eventually and get some GOOD WORK!
Lols.
It's natural for us to work because work is the only way to put food on the table and cater for our needs as work provides us with money with which we spend.
However, that's only half the truth as the other bitter truth about work is that:
Work is a actually a form of investment we make, not necessarily in ourselves but to something usually bigger than ourselves for which we get paid!
Of the truth, when we work, we are investing as well. It's two sided.
- We develop ourselves as we work.
- We develop whatever we are working on depending on whether or not we are good at our work.
The other bitter truth about work is that:
PEOPLE DON'T REALLY GET RICH BY WORKING
Hmm.
Indeed it's true. You may get rich eventually but not that rich unless of course you are involved in bad practices such as what we see in the government and people in the government these days.
Politicians work but not in a genuine manner so they are that rich not because of their work but because for the most part they loot money.
I'll love to keep it short hence I'll summarize work as thus:
You work to survive but you don't get rich by working Because work is not meant to help you get rich... At least now there you are not treating it with the normal approach
Below, we will discuss the approach with which you should approach work in such a way that you will get rich by working!... No, not just by working but by working and....
Understanding Investments Better
Oh yeah. If you are not rich then this is the reason why you may not even get rich!
The idea is simple:
You don't know how to Invest your Money and this may be because you DON'T EVEN UNDERSTAND INVESTMENTS AND HOW THEY WORK SO, let's take a while and analyze the part of investment for you.
So, what is an Investment?
In my own simple way of putting it, investment involves applying the principles of delayed gratification and putting your money away in something that's is promising (genuinely) in such a way that the money will come right back to you in the future with interest.
I know that's not the type of definition that your economics teacher will give you but it explains investment the way it is and so let's break it down.
There are 3 key things in an investment as I highlighted above.
- Delayed Gratification
It's simple. Instead of spending that money now in your needs, you don't..
You deny yourself of the pleasures of today in order to set that money apart for a greater purpose.
So, every investment comes with pain my friend. The pain of losing money now but it also comes with joy! The joy & hope of getting it back tomorrow better and bigger.
- Something that's promising (genuinely)
The investment has to go in the direction of something that reserves hope of yielding profits my friend because the purpose of investing is to earn more.
Hence, whatever you are investing in must offer promise of good results and that qualifies it for a possible investment.
- Possibilities of good Interest yield
Yeah. Since it's promising, it holds profits of yielding interest for you in the future.
Actually this happens in two ways and I prefer the second way!
I) One time interest:
You get your interest at a time and the investment is nullified for example you buy a land and you keep it for a while then sell it off at higher prices.
It's a one time interest
II) Interest over time:
You buy a land and erect a building there. You have some tenants who pay you monthly or yearly.
It's profit over time that will eventually graduate into interest and continue as long as your investment is capable to generate profits.
I prefer this method for obvious reasons although in reality, it supplies less profits at a time but over a long period of time.
Oh yeah. Now we understand work and investment, let's now compare them side by side.
Investments vs Work!
Investment is not the normal thing people do. Work is what everyone talks about! Your mom goes to work like my mom and my dad goes to work like yours right?
Yeah, we all go to work basically and of course as a student, your work place is the classroom and you work when you sit and JACK. that's a lot of work as serious students can testify.
However, investment is equally work but people that invest DON'T REALLY use the word "work" with the bulk of what they do so basically.
investors don't really GO TO WORK as most of us do.
BUT they still work
Remember, all works are investment but not all investments can be considered work.
So, work is the norm of the day because we have problems that we need to satisfy and the easiest way to do this is to do some work for someone and they will reward us for what we did and we satisfy our needs.
But when you begin to speak of putting some money somewhere that you aren't even sure that it will come back from given the risk involved, people don't understand that.
They don't understand that they make their money work but rather,
It's easier to understand that you work and get money as a compensation
BUT you need to change the Mindset.. You need to see the idea of putting your money out to work(investment) as the type of work you should be doing.
Why would you wanna start making your mind work for you?
It's pretty simple.
As a man, there's only so much you can do with your 24 hours and your strength but there are surely limitations that you cannot get across but noone said that they are truly limitations.
You just can't get across them at the moment because you are working on your own.
However, if you make an investment and spend money either getting people to assist you or getting machines to do some of the work or scaling fast in a particular environment (business) by putting in more money, you will be able to scale faster than you could have done on your own.
For example, say you wanna market a product to Nigerians, you can decide to approach them in their homes and talk to them and you can be sure that you have 168 million people to talk to in this country!
Lols. Or is it 186 million please?
Whichever way my friend, you won't just be able to do that.
"However, if you do it the smart way, INVEST IN ADVERTISING ON TELEVISION AND INTERNET AND RADIO (maybe) and you will be able to reach so many people at a very short time"
Hence, instead of working hard by going door to door,you use means that makes it easier and you are still able to achieve similar results, sometimes more efficiently than you could have achieved if you had decided to WORK IT OUT.
"The example above is a different type of advert from the type I will love you to focus on. However, it's still explains the power of spending money on investments"
"I hope this has been able to show you why it's less expensive WHEN PLANNED properly to spend money on An investment rather than do the work yourself"
Below, we will look at how one may transit from WORK TO INVESTMENT!