Is Your Money Invested Passively or Actively?
When we work, we are committing our time to productive pursuits in exchange for money. Money is our reward for our time.
To invest we need a surplus of money. If we save some of what we earn we can choose to pass along that surplus to others. Our ability to create an excess can help others develop and run their own projects. In return for our generosity, we get a share of the excess they’re able to produce in future.
When we invest in companies we are contributing to their current and future projects. When we decide to invest actively, we are consciously deciding to choose the projects we support.
We go to such great lengths to earn money to provide for our needs and wants today and in future. By investing actively, we go to great lengths to ensure our earnings are being invested wisely.
There are many benefits to this approach. Making a conscious, informed decision increases the probability of contributing to successful projects we are happy to be associated with. It provides peace of mind to allow us to ride through economic storms safely, intact, and stronger than before. It makes planning for the future easier, as greater understanding helps to reduce uncertainty.
There isn’t an approach to investing that makes sense for everybody. If this approach rings true for you, reach out to me.