Thursday, February 21, 2019

Custodian v Consumer

Saving is still hand-to-mouth consumption. It is just more French than American in that you use smaller plates, and take longer to eat. You put money aside “for a kitchen”, or “for a car”, or “for a holiday”. In the meantime, the money does a bit of Netflix and chill. Waiting till it is needed. Investing is different. The heart of investing is reinvesting. Profit is only an entry point. There needs to be a cycle. The next client. The next project. It is that pulse that drives growth. Investing turns you from a consumer into a custodian. You tend your cake, rather than eating it. Investing turns the TV off and gets your money a job. Then it looks for the next job that needs doing. And the next. Investing is active. That is why saving can only keep you at the same level. Investing compounds. The growth grows. That is where the magic happens. 


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