Just For Thinking ...
Read? Those few years of Foolishness in the stock market!!!
If you look at the above diagram carefully, our wealth will come from Human Asset and Financial Asset.
Human Asset will provide our Earned Income while Financial Assets will provide Earning from our Investment.
Is there any difference between Earned Income from our job (Human Asset) and Earning from our Investment (Financial Asset)?
Our Earned Income is for us to keep and Earning is NOT!
Even after few years down the road, we screw up badly in our job; we still keep our Earned Income. It has been earned!
But, not the same for our Earning from our Investment; it is not earned yet!
Some folks may not know the big difference and boast too much on Earning on their Investment.
Hopefully, many years down the road, they don't screw up their Investment in big ways; or else they will return part of their Earning back to the Market.
So chim?
Posts
HA! HA!
ReplyDeleteCW8888,
In my sense, nothing is yours until you spent or used it no matter how you get it.
In our job, we are paid for Work Done
DeleteIn our investment, it is always Work In Progress. Mr. Market keeps adjusting the Risk and Rewards and that affects our Earning
Yes, completely agree. As long as our money is in the market, no one can guarantee the final outcome.
ReplyDeleteActually, i want to say money is never ours until we spend it. No matter how we got it. If we save, lend or invest it, it is still "Money In Progress".
money is yours when you own it. If you spend it for a product, product is yours, not the money :)
DeleteIn actual fact to be precise, nothing in this world is yours until you convert it in your stomach and pass it out as waste. Ha! Ha!
DeleteTrue. LOL!
DeleteA good reminder, it also remind me my"wealth" come disproportionally from human assets. I can "afford" a market meltdown, but I cannot afford to lose my job..
ReplyDeleteHi sillyinvestor,
DeleteVery good indeed.
If you can maintain this idea and practise till you have to depend on your cash flow assets in your de-accumulation stage of life, i say you will be quite rich then.
CW,
ReplyDeleteYou must be a power-point king in your day job - flow charts here, graphs there ;)
We get dividends here, capital gains there; but if we factor in the lost promotional opportunities, bonuses, and pay rises...
We smart; our bosses not stupid.
How many young ones starting out on their career understand?
ReplyDeleteHave been reading too many young ones wanting to reach FF by 30s from Earning from Investment?
Some of them better be more practical and realistic!