An Approach Towards Investment

Chanakya said that “Money comparable to bride of an orthodox family is not of much use. It must be like a prostitute available to anyone in need”.

This translated verse from Chanakya Neeti tells us about the right attitude and correct approach towards the investment. We can draw two broad inferences from it.

• One must not put money only for himself and use it for charity.
• Investment is a better option than saving.

Whether you have a spiritual view or a materialistic approach. The idea is still valid for both.

Greed in Human Nature:

It is not bad to be rich, but it’s bad to be greedy. The way to make more money is to invest the money you already have. The people who over-emphasize on the acquisition of money fail to realize this simple fact.

Then they complain about having lesser money. The problem with a miser is that he emphasizes too much on saving and misses the broader picture. Do you know that they have less money because they never invested?

* Greed is the quality that the devil will exploit before moving any further.

Time Value of Money:

Time value of money is a very important concept in modern managerial accounting. The principle states that the true value of money depreciates with time. In other words, we can say that if you are not making money, then you are actually loosing it.

The rate of inflation is nothing, but a means to show the loss in purchasing power of your money. For example: If the rate of inflation was 2%, then it means that your 100 dollars have actually turned into 98 dollars (literally).

* We all know that money does not grows on tree. It requires investment and that-too a wise one.

Usefulness of Your Money:

It does not matter how much you’re earning was, but how useful it proved? No-one cares for the million bucks you have. They will be more interested in knowing your plan to spend/invest, how those decisions will affect your life, and life of others.

About Charity:

The true charity is not only about giving your money to someone in need. Your money must go only in the hands of deserving persons. Being poor and needy are not the only requirements to be eligible for receiving charity. The intended purpose must be solved.

For example: There are beggars all around the globe. In my country there are many who have an alcohol problem. Any amount of charity will prove insufficient. My personal opinion is that giving money to them is an act-of-sin. If someone really wants to help then he must donate to legitimate NGOs and non-NGOs involved in public welfare.

* I have sympathy, but it will not solve the purpose.

Conclusion:

• The key to making-more-money is ‘Investment‘.
• The un-invested money looses its value with time.
• Charity done by you must solve the purpose.

* When doing so you must always think about your risk bearing capacity, the risk involved in the project, the amount of return, and time involved. Before everything you must learn to control your greed.