Yes, that's the question: If you have $100k now, what will you do? Money discussion time! Disclaimer: just an example.
For me, I will pass 50k to my parents. Remaining will be as investment funds. No, not in banks. Equities and bonds.
It will be interesting to let money work for you to overcome inflation, by gaining a return that is much higher than bank interest rates. However, there is a higher risk involved.
Nothing in the world comes free. If you want a higher return, pay more, or risk more. For example, you invest in something that has an expected return of 10%. If you invest $1k in it, you expect it to get back $1.1k. You can get that same amount of $100, if you invest in something that has an expected return of 5%, but this time, you put $2k into it. For the first case, a higher return usually means higher risk in the sense that you might get a return that is lower than that of 10%. Maybe 7%. Maybe more. That is viewing of money in the short term, in terms of money gained. If you look at percentages, that $2k you put in actually grows more slowly in the 5% rate than the 10% rate. And so, in the long run, you actually lose the chance of earning a higher return.
It's the same thing in betting systems like 4D. You want to win more, pay more. The chance of getting the correct number is usually 0.23%, considering no repeat numbers. Of course, pay more, you have a higher chance to lose more.
If you want more money, work harder, or risk more. Some people can work like hell just to get the money they want. Some people work according to their interests. Some people let money work for them. Oh well. It all depends on what you want to achieve, what you want in life, what you plan to do, and how rich you are initially.
Some people can go travelling without batting an eyelid. Some people can buy that expensive car without feeling the pinch. Some people can enjoy life at home and not doing anything.
But they are some people. That might be what they desire.
What's my desire? I have not set down something in my mind. I, as the only child in the family, has more things to worry about in the future than those with siblings. I do not foresee that what I might earn in the future will be able to cover costs and yet have a steady growth of savings. Therefore, that's 1 reason why I do not want to think too big. I want my head to fit into my hat. I do not desire too big a hat.
At least not for now. I will think big only when I see that I have the real ability to. No point talking and talking and nothing is done.
That's why out of 100k, 50k to parents. 50k for investments and emergency uses. Not much entertainment involved in here.
So do I start disowning friends that do not believe in my plan? Wahaha!!!
No of course. Friends are part of my pillars. Friends can let me fall, but I don't let them fall. Sometimes, equations are just…. unequal.
