The Wealth Triangle

Facebook
YouTube
Instagram
The Wealth Triangle

You want to invest. You can invest. But you are not sure if this is the right move for you. You are afraid that you might lose your hard-earned money in a blink of an eye. Don’t worry, I know the feeling. That’s exactly what I felt before and I’m here to help you know better.

The reason why we are afraid not only in investing but in all other opportunities to grow our money is not really because there’s risk of losing it all but because of ignorance. In all of our endeavors, only awareness will help us have the confidence to face them. If we have even the basic knowledge of the things we are about to take, our fear if not totally gone, will subside.

It’s just like being a seafarer. One of the biggest fear we have is the high possibility of an accident in the ship. Most of the time, we are in the middle of nowhere. What if we hit an Iceberg or get caught in a fire? How will we survive?

Imagine you are living on top of an LPG tank. You are always cooking and there are instances wherein you’d have to fix the tank yourself because something’s wrong with it. Do you imagine how dangerous this is? Well, to seafarers, this is the situation every single day most especially if they are on a tanker ship. They most of the time face the danger of getting into fire while they are welding or doing other stuff to maintain the performance of the ship. But how come they still feel safe doing so? Simply because they have been taught how to lower the risk of this danger in their workplace. We have this so-called “emergency drills” wherein we were trained on what to do during emergencies such as fire and ship sinking.

If you want to learn about fire prevention, you have to understand one thing – the FIRE TRIANGLE. Fire is created by 3 elements: Oxygen, Heat and Fuel. Imagine I have a paper (fuel) with me, a light (heat) and there’s of course the air (Oxygen) that we breathe. You might say 3 elements are present. How come there’s no fire? That’s because we need a certain proportion of these elements to create a fire. If there is more fuel but less heat and Oxygen, there won’t be any fire. Same thing if there is great amount of heat but very few amount of fuel and Oxygen. Only when we have the exact proportion of these elements will chemical reaction occur and create a fire.

Now, if you understand that simple concept, your fear to work in a tanker ship will lessen. Even if you know there is a danger, your control over the occurrence of such incident will make you feel at ease in your working environment. That is exactly how it is in growing your money as well. You don’t have to be afraid when you understand the basic concept of Investing.

If there is a Fire Triangle, I could say that there is also a Wealth Triangle. To grow your money, we will also need 3 basic elements: The Amount of Money, Interest Rate and Time.

You might have huge amount of money but if the interest rate wherein you put it is very low and there is not enough time, you’ll have a hard time growing it. Likewise, if you have a lot of time and a high-interest rate investment vehicle but not enough or no funds at all, then no growth is happening. Like a fire triangle, if you will have the right proportion of the three elements (amount of money, interest rate and time), your money will have its highest potential to grow. Remember, the bigger the amount of money, the higher the interest rate, and the longer span of time is equal to higher chances of being incredibly wealthy.

Take note that in all the things that are new or foreign to you, you will always remain a prisoner of fear when you choose to remain ignorant. The only solution to that is knowledge. Never stop learning because you don’t only grow your money if you do so. You also grow yourself as a person in the process.