Wise forms of investment? Own or rent ? Crypto or shares ? What’s right and what’s wrong when it comes to save your money / make it grow ? The basic idea is to define what needs to be after a period of time.
We miss defining for ourselves what our savings should do for us after we have worked for it to grow. We are quite focused on the method of its growth and not the end result. One might have invested in shares and seen it grow by 20%, another by 25% in crypto, well there is for sure who has balanced it by bits and pieces in every form of investment. These are all in my opinion termed as calculated gamble. One reads the faces / body language of people on the table while playing poker which is similar to investing in growth of a company based on their plans. What we miss to define is the precise purpose of the investment when it starts to support you (and not when you are supporting it). Some of the generic statement can be “I need to have same kind of a lifestyle post my retirement, better, kids must be provided, wife must be cared” etc etc. We don’t define something as accurate as “30 years from now this must buy me a house, get me groceries” etc. we are really focused on how and where we need to invest so that we get maximum returns and not on the purpose of the investment.
Will it help if we define the propose? Do we make sensible, focused and targeted investment if we define the precise purpose ? Well no one is sure about it but one thing is certain, apart from the usual dimensions of investment which is growth rate, security and legitimacy we add another dimension which is more relevant to the wishes of the individual who is doing the investment.