THE RISKS OF EASY MONEY AND INVESTMENTS – PART I
In the world of economics and finances, the word invest is equivalent to the use of capital in a business or a determined activity with the intention of obtaining profit. It tries to turn money into something profitable that is reflected by having a superior economic income.
This is a subject that only the best traders are perfectly knowledgeable about, which is the reason why they are cautious when they make decisions. To invest in certain occasions involves million dollar losses that must be repaid in the long term or that can drag a business to ruins.
Behind the verb ‘to invest’ exists a theory of how a business can actually grow or how it can get stuck.
Investing vs. Spending
Nowadays, the verb ‘to invest’ has begun to get popular in all areas, as if it had total validity in any type of commercial action. They tell you that you are investing in your future when you acquire a savings account or when you buy an exercise machine, and even when you decide to finance your own house.
The truth is that the concept has led people to understand that spending money can be justified by the rewards it will bring to their lives. Sure, maybe that running machine that you acquire for your home help you achieve better health and help you lose those extra pounds. However, it is just an expense.
Moreover, an expense does not mean an economic retribution for your life. Is a type of money that will not come back and see it reflected in your personal economy you would have to sell that product again to see a percentage?
Why Is It Important to Differentiate Between Investing and Spending?
Sadly, we live in an era where everything revolves around human consumption. We go to a shopping mall or a supermarket, and publicity ads are everywhere. Many of them come with phrases that state “invest in your life by buying this,” “invest in your happiness by eating this thing” or “take advantage of a fantastic investment: pay for your vacation now.”
All of this is part of a marketing system where we are seduced to constantly spend and to understand that our happiness is dependent upon our potential to spend. The truth is that when you learn to invest, you spend less, and the concept of not spending becomes an authentic investment.
The Relationship Between Spending and the Easy Life
What comes to a life where you constantly spend and spend is the concept that the capitalistic system sells where life understands itself like something easy. People begin to conceive then that easy life simplifies in spending, and having money.
“If there’s money, then you have access to everything,” that is the reasoning that exists nowadays in the majority of young people. Therefore, the easier it is to acquire it, the more you could live a life much more “happy” and “full of emotions.”
Is in that exact moment where you fall in the risk of easy investments and the desiring wish of obtaining easy money.