Do you know the old saying: "Money doesn't grow on trees"? Well, you most likely do. But do you know it is not true? Money actually does grow on trees. After having read this article I am sure you agree and want to start getting your personal money tree.
It is always good to refer to nature for some of the biggest truths in our life. It makes us wonder about things and it makes some things more clear. Many times farmers are more in tune to these answers, because they work in a close relationship with nature. If I asked a farmer: "Do money grow on trees?" what do you think would be his answer. He would say "Of course they do! Every autumn I harvest money from my field".
But why do we believe the saying then? We believe that old saying because we have lost our way and have started thinking differently. The farmer knows he has to plant the seed in the spring in order for him to harvest in the autumn. He knows that the plant needs sun, water and fertilizer to grow from the little seed to the plant he can harvest and sell the fruits of. Somehow we have lost that knowledge. We think we can get a money tree we can use every time we need money, forgetting we have to take care of the tree along the way.
I think this analogy can be expanded to most of the areas in our life. My interest is in investments and in that area it definitely is true. To make it clearer for you I will explain what you need to make your own investments a money tree.
The investment strategy is our seed
It is like the seed for the farmer. Without the seed the plant will not have its DNA and know how to grow into the desired plant. If you plant a seed of wheat you can't expect to harvest oranges. If you want to invest your money your seed is the investment strategy. The investment strategy defines how your investments will be made, how much capital you invest, your investment goal, which assets you will invest in and when you will trade in the markets. Without the right investment strategy you can't expect to reach your financial goal.
The financial environment is our soil
The farmer needs to plant the seed in a field with the right soil. If he plants in rich dirt chances of success is much better than if he tries to plant the seed in sand. No matter how much effort he puts into growing the seed it is bound to fail. In the investment analogy the financial opportunities are the soil. If we have no opportunities of investment it does not matter how great a strategy we have, we are bound to fail. Fortunately we have very good conditions in the western world, with plenty of opportunities and relatively stable economies and governments.
The money invested is our fertilizer
Without adding the right fertilizer the farmer will not get the plant to grow. If he adds fertilizer the plant will grow fast. Our fertilizer is the money we invest. With a good strategy and a fertile environment all we need to add is money and the money tree will grow. Like the farmer we reach the best possibilities if we keep adding money to our investments. It will make them grow much faster.
Time is our sun
The farmer knows he can't do all the work. He needs some help from the sun. If he plants a seed of wheat the wheat plant needs sun to grow. The farmer has no control of the amount of sun the plant will get, but can use his historic experience to plant a seed of a plant that is suited for the weather condition of where the field is located. Time is our sun. We have no control of the time, but we know we need time for our investments to grow. Often we get impatient and want results immediately. This could result in us changing the factors we do have control of, but it will not get us closer to our goal. Patience with our decisions will.
Management of our investments is our water
The farmer will make sure the plants get water. If the weather is not supplying enough water, he knows he has to. Otherwise the plants will wither and die. We also need to manage our investments, for them to be on the right path to grow into our money tree. If we just make our investment and then forget about it, it might not grow as we want it to. Maybe we will not have the right balance in our portfolio or maybe we just need to make sure the strategy is still working as planned.
I hope it has become clear to you that money does grow on trees. We have just forgotten that it is not a tree we can forget about until we want to harvest from it. We need to do the work to make it grow.
Thank you for reading this article. I hope you enjoyed it and would like to share more of my knowledge with you. If you want to get the investment results you desire, join me and learn the Secrets 2 Invest.
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