Wednesday, 2 March 2011

Investment == Commitment

What is investment? Well, from Wikipedia, investment is putting money into something with the expectation of profit. More specifically, investment is the commitment of money or capital to the purchase of financial instruments or other assets so as to gain profitable returns in the form of interest, income (dividends), or appreciation (capital gains) of the value of the instrument. 

So did you see the main point? Commitment is the main point, here's what commitment refer to which is relevant in investment: 
  1. Agreeing to use money, time or people in order to achieve something.
  2. A promise to do something or to behave in a particular way; a promise to support somebody/something; the fact of committing yourself.
  3. The willingness to work hard and give your energy and time to a job or an activity.
Anyone who think that handing your own saving to the financial planner and let him/her decide everything for you is not really an investment!
If you want to invest, you need to be committed, meaning that you have to work hard for it, and promise to yourself that you will consistently spending time/energy to achieve the financial goal which you had set for yourself! 

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