Tuesday, 9 October 2012

Why do I invest?

So why do I invest?

The simplest reason I invest is because it is almost the surest way that will bring wealth to the investor, if implemented correctly over the long term.

And it is probably the only way for an ordinary employee to achieve financial freedom and escape the rat race, at a much earlier time than the officially stipulated retirement age.

Let's look around. What are the ways to get rich?

Firstly, through luck where one is born into a wealthy family with a silver spoon, or inherited an enormous sum of wealth from the deceased (whoever it may be), or strike a lottery.

Secondly, through venturing into business activities. It means being a business owner who is his own boss, excel in his business, makes loads of money in the process. Needless to say, there will be high risks involved, and if he is able to overcome these risks and thrive, the fortune will be his rewards.

Thirdly, through shrewd investments. Be it forex, common stocks, properties, commodities, alternative investments such as wine and precious arts etc. Of course, each type of investment route requires different skill sets, temperament and psychological make-up to perform.

Personally, i have chosen the path of stock investment because of its flexibility, the relatively low requirements in terms of start-up capital, and definitely the fun of picking the right stocks and being proven right later on. There is no greater satisfaction than seeing things turned out as desired, and knowing that you have been right all along.

I do not think I have the mental tenacity and resourcefulness to go into business. small trading activities that serve as alternative income could be possible, but definitely not on a scale which my entire livelihood is dependent on it. I am also not born into a very well-off family. With that I am left with the third choice.

It is not a case of 'I am left with no choice sigh..'; but rather, an active option that stems from the true belief that right investment method/concepts/practice can bring me to a status where I am financially free from the 9-5 slog and am free to pursue my interests.

This has been hard wired into my brain. I have absolutely no doubt that I can reach there by age of 55.

Advocating for a certain cause, especially one that needs long term commitment, unwavering belief and consistent hard work, needs the support of a fundamentally sound reason. It is especially true when there will be setbacks and adversity along the way.

Hence, the reason explained above will serve as a enlightening reminder from time to time. It will be the beacon of light, whenever I feel lost or disillusioned.

This is what I believe. This is what I advocate.

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