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You Need To Be Wise About Money
Your money shapes the world of tomorrow
You have $100 — what should you do with it?
Note: this article introduces money, finance, and investing — it is not advice. Do not follow anything without a full understanding of the underlying topics. I am not a professional, and my knowledge is likely flawed. Proceed with caution.
Broadly, you have 3 choices:
- Spend it — buy a shiny toy,
- Save it in the bank for a rainy day. The bank uses it to invest in whatever it chooses while you have it saved and pays you a paltry interest, or
- Invest it yourself in a stock of your choice.
In all these cases, you shape the world of tomorrow.
How? Read on to find out.
The goal of this article is to address these simple questions:
Why is finance so complex? More importantly, why should you care?
TL;DR: Finance is complex because the future is uncertain and humans are selfish. The end goal of finance and money is to help you mitigate this. It is important because it forms the bedrock of the society we live in — it puts the Capital in Capitalism. Investing allows you to live a better life and make the world a better place — or, you know, buy Lamborghinis and stuff.
Note this article is part 1 in a 3-part series on money, finance, and investing. The coming articles focus on the What and the How of investing — where the rubber truly meets the road. Stay tuned.
Money matters.
Money and finance. You can’t escape this topic anywhere you go. You pay for everything you use daily — the cell phone, tablet, VR headset, or laptop you are reading this on, the internet that brings it to you, and the TV that you are watching alongside the “reading”.
Money buys you stuff. Our material lives are governed by finance and to say it is not important is naivete. For the purpose of this article, money refers to your hard earned cash and finance is the umbrella term for everything to do with money — spend it, save it, splurge it, secure it.
