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Investing Basics

Why you need money to make money

You make your money make money by investing it, instead of spending it. Money is like your slave, you can make it work to earn an income for you.

Metaphor - Money is like your slave.

You can send your slave out to work for somebody and earn you an income. But you may need to suffer some hardship as you have to do your own work. Similarly, when you invest your money in the hope of getting an income, you suffer "hardship" by not being able to spend it for your immediate enjoyment.

You may want more income and make your slave work harder. In doing so, you run the risk of the slave falling ill and not been able to work. In addition, you may even have to cough out money to pay for his medical expenses. Likewise, risky investments bring higher returns but also come with risks of losses.

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