Tuesday, May 24, 2016

#1 - Money Matters








“A wise person should have money in their head, but not in their heart.” Jonathan Swift


In the world we live in everybody needs money. We need money to ensure our very survival. We need money to fulfill our most basic needs such as food, water, accommodation or clothing. Without money, none of these very basic needs can be met. But we also need money to fulfill all of our other needs, such as healthcare, education, transportation or even leisure. We live in a society where virtually nothing can be accomplished without money and this is why no one can ignore money after reaching a certain age. It's always there in one way or another. Let's just say it now and be done with it: money is important. Money is very, very, important...  

I know that what I just said is painfully obvious. However, even that being the case, I must confess that, until relatively recently, I hadn't been able to fully grasp this simple and obvious truth. In fact, for most of my life, I regarded money with disdain. I truly believed I was above such a thing as money. I was more concerned with the higher things in life, such as metaphysics, ethics, history, politics literature or cinema. Money did not seem worthy of my attention. It lacked the nobility, the elegance, of other, more important, matters.

It wasn't until about five years ago, when I graduated from university, that I started to fully understand the pivotal role of money in society. In other words, it wasn't until I stopped being financially supported by my family that I realized how important money is. In fact, I quickly realized that, unless you can make enough money to support yourself every month, everything else quickly becomes unimportant, since you start having trouble meeting your fundamental needs such as food or accommodation.

The truth is that either we like it or not we live in a capitalist society where money is at the very base of the social structure. Every adult who wishes to lead an independent life needs to make money somehow. This is the harsh reality people face when they finish their studies and stop being supported by their families. In fact, a consequence of this reality is that the vast majority of adults in the world today are forced to structure their lives in such a way as to produce enough income to cover their monthly expenses. In other words, most adults exchange most of their time for money. We call this process "working" or "having a job". In fact, the normal status for an adult these days is precisely to be an active worker, that is, to have a job. This usually means working for another person or for a corporation, which ends up being almost the same.

My case is  strange since I'm thirty-years-old and I've never had a job.  Yet, in spite of never having had a job, I have been able to support myself for almost five years without asking anyone for money. I've done this by investing my money, which has allowed me to produce enough income to cover my expenses in these past years.

I got into the investing world by chance, since the only thing I did was run into an investor who showed me the world of financial investments. If it hadn't been for him chances are I still wouldn't know anything about investing, just like most people that are my age and even older. I decided to start this blog in order to share what I've learned so far with those very people. I hope that, through this initiative, I can contribute to improve people's financial knowledge and their prospects in life as a result. I also hope to refine my own knowledge through writing about these subjects on a regular basis.

I must state that, in spite of having been an investor for almost five years now, my knowledge is still extremely limited and I'm sure there are millions of investors out there who are  more knowledgeable and much more successful. Therefore, my contribution can only be a small one, yet I believe that it can be valuable to the extent that I can raise some awareness to the often overlooked fact that there is a world of financial knowledge and prosperity out there waiting to be discovered. If money is so important, as we have seen in the beginning of this essay, shouldn't people dedicate some time to learn about how to make more money with less effort and less time?

The truth is that having a job is not the only way, or even the best way, to make money. I'm not saying that people shouldn't have jobs, what I'm saying is that there are other options worth being explored. Most importantly, if we admit that money is an essential element in our lives, I believe that it makes perfect sense to take some time to understand  how it truly works, since this can lead to more money and more free time and better quality of life as a result. Even though I consider myself an investor, I'm certainly not an expert. I'm just someone who is willing and eager to learn more about the world of money because I believe that this is very important in our day and age. If you agree with me on this, learn with me and from me by reading this blog. Welcome to the Investor's Den, a place of discussion for investors and anyone else who wishes to learn more about money.  

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