Why invest or trade?

The simple answer is for money or to build wealth. The next logical question is why MORE money? Our job already supplies us with some money. Money is not the most important thing in life to most people and it doesn’t guarantee happiness or true joy.

I invest for 2 main reasons:

1) Money buys choices

Although having too many choices can be crippling at times, it is still nice to be able to choose. Choices for big life decisions such as being able to choose to retire versus being forced to continue to work for life sustenance. It can also be for simple things like being able to choose to pamper oneself with good things at times.

2) To be a good steward of the resources I have been given

Money is an example of a resource. I believe that everything entrusted is meant to be grown. After one has set aside sufficient emergency funds, the excess if left in the bank erodes due to inflation and the pathetic bank interest rates. The next step to grow this resource is to invest. This money can be used to leave an inheritance or to build a legacy. It can also be used for social causes or engage in meaningful activities that bring joy.

It is not about having or wanting money per se but what the money can do for one, loved ones and the society or the world at large. For me, it is part of responsible retirement planning and providing for and pampering my loved ones. Perhaps, building a legacy might come at a later stage in life!