The Matthew Effect: Saving versus investing. Taking a calculated and Intelligent Risk
The Matthew Effect: Saving versus investing. Taking a calculated and intelligent Risk
A few days from today, 2024 will be rapping off, and a new year will usher in. What do you expect from the year to come? Are you planning to do things differently or still maintaining the status quo and still expecting a different outcome?
I was in church some days ago and the cleric took his sermon from the gospel according to Matthew, the 25th chapter. Some people can relate to the parable from the chapter of the Bible where Jesus talked about a certain master who called three of his servants and gave them funds to double. Each of them gave them the funds according to their capabilities. The story has it that, the one with $5 made an additional $5, the other with $2 made an additional $2 while the one that was given $1 returned with no interest at all. In the end, the one that has not was taken from him and added to the one that already had.
Critically looking at the story, it appears that the master was not just in his judgement for collecting from the one that has not and giving to the one that already had. Well, that's looking at it from the emotional perspective but business and investing do not require emotion, it involves taking an intelligent and calculated risk to have more returns.
The story has it that the man with $1 for fear of losing the money had to dig the ground and put the money. Hence couldn't make any profit.
Some people are like the man that was given $1. They are afraid of losing their money, hence they have decided to remain where they are. Fear is an enemy of progress. It has made a lot of people remain stagnant because they do not want to lose out. The Irony of the situation is that one cannot grow without taking a risk. People must put money where their mouth is and before this is done, people must learn to be intelligent and calculative.
The last servant even playing safe still loses the money. People who fail to invest usually have one way or the other to lose their money.
In 2025, put your money into action and see you enjoying the interest that comes from it. The consequence is that if you fail to invest, the money will indirectly go to the ones that invested and you will lose everything.
The reaction of the master after his return towards the unprofitable servant.
Angered by what he heard, the master said to him, ‘You’re an untrustworthy and lazy servant! If you knew I was a shrewd and ruthless businessman who always makes a profit, why didn’t you deposit my money in the bank?
One must be investment conscious, although a bank's percentage return on investment is usually little, however, having a little is better than none.
This message is specifically for those, who would not invest their money but rather save it. Saving money is a total waste of time and resources.
The servant who saved returned with no interest but others who invested had returns on investment.
In 2025, think about investing and not saving.
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