Recently, there has been much chatter covering billionaires getting richer because of their investments and I feel that this is highly problematic. Yes, those people happen to be extremely rich for all kinds of reasons. Whether right or wrong, I do not think it is wise to worship these figures because the intent behind it is mainly wishful thinking. Such aspirations are not only highly unlikely but also to a certain extent wrong. To say the least, becoming insanely rich will only worsen social inequality in the world which is already causing multitudes to suffer malnourishment and poor living conditions. On top of that, this will also cause investors to go for higher-risk assets in the search of super high yield returns that apparently are “possible” in today’s crypto market. However, the success rate and the window of opportunity is just too small for anyone to devote time and resource to it. This brings us to the objective of this week’s post, and that is to remind investors that they should always stay grounded, work hard, accumulate capital, and then invest sustainably for decent returns over time.

For one to be rich many must be poor

The value of money is derived from the effort put in to create it. The value or “money” created by millions of people is then channeled to a few to make them rich. While I feel it’s alright to be better off than the majority, I do not condone being super-rich and just hoarding the cash for ourselves. As more people are exposed to trading and investing through low-cost brokerage apps, I think it is important to tell them that what they are doing is mainly to catch mispriced assets and “punish” wrong moves made in the market.

Understanding the value of money is paramount to proper money management

I wrote a post that covers the topic of “Any number of fools can get rich but not many know how to be rich” and in that post, I tried to explain that there are notable downsides when you are wealthy. But it does not stop there, because it takes a person with substantial wealth, proper money management skills, in order to stay rich. Otherwise, all the money you have inherited will not last for long. Additionally, you also have to understand that “wealth changes people” and if you are not prepared for it, it will cause you to lose assets and relationships that cannot be bought or sustained with money.

There are no win win scenarios when investing

It is fallacious to think that investing will make you rich. Surely there are many who got rich because of their investments but there will always be equal if not more losers in the game. Knowing this fact reminds us that when investing, we might sometimes be on the losing end of the trade. As such, never assume that investing will make u rich as the situation in the market changes constantly. In fact, the same news reporter might be saying why the same company will succeed, and surely fail in the same year or even in the same month.

Closing thoughts

Today’s short post aims to inform younger investors or investors who are still new to the market to stop dreaming about becoming one of the richer and “successful” people in the world through investing. Do yourself a big favor and stay grounded, understanding that investing is not an activity that will make you rich (nowhere as fast as you would imagine).