Young investors, time is on your side

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#21
(02-04-2013, 01:46 PM)smallcaps Wrote:
(02-04-2013, 01:36 PM)Musicwhiz Wrote:
(02-04-2013, 01:06 PM)safetyfirst Wrote: I have some relatives who think that they should spent every single cent they earn, to them, it is a sin to hoard money. Such thoughts do surprise me.

Why would it be a sin to hoard money? Because you can't take it with you when you pass on? Tongue

I guess it depends on reasons for saving/spending?

There must be thousands of different reasons, like:
- saving in order to provide security for one's family
- spending for a family vacation and so on...
i believe your relatives must be practising some kind of "religious beliefs"? In this world there are many types of religious belief. It is selfdom from your own belief.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#22
I think it is how you define "hoard". Money is worthless if you don't spend it. Just as burying a rock and bar of gold is the same utility.

OTOH there is the extreme consumerism mentality of spending every cent you earn. Aesop's fable of Ant & the Grasshopper comes into mind.

The sensible way is somewhere in between. 中庸之道

For those not interested in leaving a legacy, the most ideal case is to spend the last penny when we breathe our last. Unfortunately we don't know when we will die so we can't mathematically project that Big Grin
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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#23
(03-04-2013, 10:44 AM)specuvestor Wrote: I think it is how you define "hoard". Money is worthless if you don't spend it. Just as burying a rock and bar of gold is the same utility.

OTOH there is the extreme consumerism mentality of spending every cent you earn. Aesop's fable of Ant & the Grasshopper comes into mind.

The sensible way is somewhere in between. 中庸之道

For those not interested in leaving a legacy, the most ideal case is to spend the last penny when we breathe our last. Unfortunately we don't know when we will die so we can't mathematically project that Big Grin

Write a will to spend the last penny is a way to ensure that Tongue
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#24
(03-04-2013, 10:47 AM)CityFarmer Wrote:
(03-04-2013, 10:44 AM)specuvestor Wrote: I think it is how you define "hoard". Money is worthless if you don't spend it. Just as burying a rock and bar of gold is the same utility.

OTOH there is the extreme consumerism mentality of spending every cent you earn. Aesop's fable of Ant & the Grasshopper comes into mind.

The sensible way is somewhere in between. 中庸之道

For those not interested in leaving a legacy, the most ideal case is to spend the last penny when we breathe our last. Unfortunately we don't know when we will die so we can't mathematically project that Big Grin

Write a will to spend the last penny is a way to ensure that Tongue
HA! HA!
Idea is quite brilliant but a little "mean". Maybe only Institution or Bank willing to be your executor. Even then who is to ensure that they do what you want? Just for talk only.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Reply
#25
A hoard is useless if it is not productively invested. A hoard will be $1 today and 10 years later when kept in a safe.

These could be better used to create employment (if you are a businessman), invest in companies (to get better returns), donate to a charitable cause (accumulate good karma), etc. Creating employment feed families which is an important contribution to society.
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