"Investing" is a need

I would like to clear some misconception about investing, and I would like to ask my readers to "hear" me with an open mind.

Misconception No.

1. Investing is risky
2. Investing is only for the "rich"
3. Investing is not my cup of tea.
4. Since I'm not a finance student, it's "safer" for me not to invest, instead I'll get my master, work hard, save money.
5. I have no money, therefore, I don't invest.

When I say investing, I'm not just saying investing in unit trust or the stock market.

Everybody is investing regardless you know it or not, it's just that different group of people invest in different things.
Let's see the differences in what the poor, the middle class, the rich invests in.

The Poor invests in,

1. Children
I'm not against you having children, and I personally know of some of the very rich people having alot of children because they love kids and like to groom their kids and see them growing up useful to the society. One of the example is Ng Teng Fong.

But generally, all over the world, we can tell that the poor generally invests in children.
Just like my grandparents have 8 kids, and i believe your grandparents have alot as well.
For asian like us, it's only right for us to take care of our parents when they grow old, so by having more kids, they would in a way have a better retirement.

And, during their times, our country is not as prosperous as it is today.

2. Invests in "depreciating" material gains.
Once they get some money, they first thing they spend their money on is a good meal way beyond their budget, buying things for instant gratifications, and before you know it, that stuffs is being thrown away.

3. Invests in poor mindset.
Usually, this group of people submit to Fate that this is their life.
They don't bother to do anything to make themselves more valuable to the society.
People in this category always say things like," last time i never study hard, that's why now i'm poor"
They don't realised that our greatest asset is not a degree from harvey, but our ability to think.
I can show you examples of people who didn't even complete secondary school yet is richer than people who have a 1st class degree. They can actually start by thinking "how can I add more value to my workplace so that my boss notice me?" or "I must do my job to the best of my ability!"
People with this mind-set seldom stay poor for long.

Let's move on to what the middle class invests in.

1. A good education/degree
2. A secure job with good benefits
3. get married and buy a house(thinking that their house is their greatest investment)
4. Save money for one group of middle class/ bad debts through credit for another group of middle class
5. Invests the remaining into a well balanced, deversified portfolio of unit trust.

Finally,

let's take a look at what the rich invest in

1. Financial knowledge
2. how money works
3. Real estate
4. Hedge fund/Private equities/ Private placement Investment
5. Business
6. Good real estate & insurance & stock broker (the rich pays these group of advisors very well)
7. Lawyers & accountant & doctor (the rich pays these group of advisors very well)

They don't try to cut corners when meeting up with their brokers and say that their rates are too expensive.

They understand that the advise that comes out from the mouth is worth more than that few dollars.

Knowing these, knowing that we all invest, why not invest in something that helps us to get to our financial goals, instead of doing things that will keep us poor or just mediocre at best.

I'll move on into details next week!
See you again.