Journey to Dreams

That Nagging Little Thing

Brien Hao
Publish date: Thu, 15 Nov 2012, 07:58 PM
www.investingmalaysia.blogspot.com

More of a sensible, real life situation blog, it outlines my financial adventure through all aspects. Not so technical, much more practical, they are a young professional's journey to a dream.

 

What is investment? 
"Forgoing privilege now, for bigger privileges in the future." 
 
Investment means taking any asset (time, money, friends, skill) and CREATING MORE ASSETS. or evenCHANGING ONE ASSET INTO ANOTHER. 
 
Which kind of investment creates wealth? Both of them. and you have to do both right. 
 
However, there is always one nagging little thing, that we always have to deal with. Especially when it comes to financial investment, but also, to all investments. 
 
Read more to find out! :) 

 
That nagging little thing is RISK. 
 
No...actually, it is the FEAR OF RISK
 
What is risk? 
 
"The PROBABILITY that something bad will happen"
 
In other words, chance that you will not succeed. 
 
Talking to my friends, one of the biggest reasons why they don't invest,
 
"Aiyo, last time lose money, now scared!"
 
"Scared to lose money lar, better put in fixed deposit!" 
 
The thing is, people, that we are AT RISK ALL THE TIME. 
 
Risk is a part of life. 
 
Every time you open the door and leave your house, there is a chance you might not come home. 
Every time you spend money, there is a chance you won't get it back. 
So using risk as a reason NOT to secure our future is a really lousy excuse. 
 
Of course, there is such a thing as High risk, and Low risk situations. 
 
Now for the solution, how do deal with risk? The enemy of risk, is INFORMATION
 
The assassin of risk isPRACTICE
 
When you drive a car, you can reduce risk by simply wearing your seatbelt, lowering your risk environment. You can further reduce risk by carefully observing your surroundings. You can also reduce risk by practicing driving properly. 
 
The same goes for financial investment. in other words, DO YOUR HOMEWORK. 
 
However, sometimes you don't have the time, or the patience, or the resources to do that homework. 
 
The alternative is to GET SOMEONE ELSE TO DO IT FOR YOU. 
 
Not everyone has the time to do all the research necessary to use the stock market. So for this segment, unit trusts are the way to go. But you'll need a good agent, someone with financial background, who can help you make the right decisions. 
 
So in the end, embrace risk. Just make sure you do everything possible to reduce it. :) 
 
That makes life worth living! 
 

www.investingmalaysia.blogspot.com

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