
UNDERSTANDING THE INVESTMENT PROCESS
by Paul Barrett
Investing is simply a process of taking something of value and placing it in an area where you hope it will increace in value. Althought this section is concerned mainly with the investment of money, for wise individuals, investing has a much broader application.
We can invest our time, energy, as well as our money. If you think in terms of the bigger picture, everyperson on the earth is an investor. Yet because of unwise decisions, over 95% of people are not successful in most areas of their investing. Too many people waste their time as well as their money. One of my goals as an author and the director of the IFI is to help you learn how to invest your time as well as your money.
As a member of the IFI and a reader of Financial Wisdom, you will understand that one of our most precious assets is time. To be wise is to be totally conscious of time and how it can be invested to improve both the quality of our lives as well as our financial portfolio.
My desire is to help all members increase the quality of their lives as well as the wealth of their investment portfolios. By using time and money in wise ways you can create a totally prosperous life that provides you with the greatest amount of health, joy, and financial security and success.
Time Equals Money
Time really does translate into money in more ways than you may realize. When you invest your time in an education, a career, and a business there are obvious financial rewards. But there is more. When you invest time in your health, relationships, and higher ideals, you become full of energy. That energy translates into more money.
When you invest your time in the focused pursuit of a goal that is compatible with your inner spirit, or the divine plan for your life, you can achieve phenominal amounts of money. Bill Gates, I believe, is an example of a man investing time in the focused pursuit of a goal that was compatible with the divine plan for his life. Sam Walton, founder of Walmart stores, was another. They became the wealthiest men in the world.
Time translates into money in other ways as well. If you hope to be a successful investor, there is an investment concept called the Time Value of Money that you should be familiar with. The time value of money means that the value of money with be worth more or less depending on time. In the early 1900's a dollar was worth more than a dollar is today. And in 20 years from now a dollar will not be worth as much as it is today. In this sense, unless we invest properly, time can be an enemy that robs our money from us.
It's true, because of factors like inflation, money decreases in value over time. However, if we invest in the right investments, instead of being an enemy, time actually becomes our ally. By utilizing time to a maximum degree it is possible for our money to compound and increase in value at what appears to be an expotentially acelerated rate. Time, as often stated, is of the essense. Be cognizant of time and use it to your advantage. Remember great wealth was not created overnight. It takes time to reach your goals, as it takes time for an investment to increase in value. Get started as soon as possible and invest as much as you can -- let time be your best freind!
If you are a new investor, it is recommended that you invest time in learning as much as possible about investing. Time invested in becoming wise in the area of money will pay handsome rewords. It is an investment that will continue to pay dividends through out your life.
The stock market is one of the most fascinating investment arenas. It can be driven by greed, fear, and intelligent choice. For the most part it's a combination of all those elements. Understanding the market and how it reacts can be critical to your investment strategy. Be sure to understand that the market is not always logical. It does offer outstanding opportunities. It's possible to double your money in a short time. Some investors have done that overnight. Over the long run the averages prevail. Trying to beat the market over the long-run can be a dangerous proposition that leads to greed, taking higher than needed risks, and eventually disaster. Be wise and sensible in your investment decisions and follow a plan of action based on more that a greedy attempt to beat the market and speculate.
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Investment Principles
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