Sunday, February 9, 2014

Investing is like water that flows out

Water that flows is constantly renewed with fresh water. Water that doesn't flows will become stale after awhile and the colour will change. Why am i talking about water here? The reason is I think water represents our money.

Some time ago, there was one news reported where people feedback that one of the private swimming pools in a residential unit has not been changed for a very long time. Algae has started to grow in it and the water is no longer clear. It was later found out that the owner was not staying there and had turned off the outlet where the water could flow resulting in the water turning stale.

Money that doesn't flow will also become stale. What I mean is money that you save which is not invested will become stale. We all know that inflation decreases the value of our money. The higher the inflation, the lesser the value of your savings is worth year after year. It is wise to put your money in a place where it can flow. Investing for income creates that flow where your money generates income in terms of dividends from stocks or rental from properties. This flows back to you creating a constantly cash flow for yourself.

Rich people become rich because they know where to put their money. Their money is constantly flowing like fresh water that is always renewed. If you do not let your money flow, it will become stale and worth less and less overtime. Then again, make sure you put your money at the right place. Placing it in the wrong place may lead to drying up. There must be water flowing back as well.

Giving is also be a form where your money can flow. It adds purpose and meaning to what you have. Treat your family or friends for a good meal? Surprise your spouse with something special? Giving back to your parents who have raised you up over the years? Donating for a good cause in society? These are some things which adds value to our money. Creating cash flow will  make you wealthier while giving back will make you a better person. This will certainly make our lives more worthwhile to live. Don't let your money become stale and smelly.

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Related Posts:
1. What if money was no object?
2. 7 factors that differentiate rich people from normal people


  1. Hi,

    Congratulations, I can feel that you have become better and better in writing. I have enjoy your past few posts including this one :)

    keep up the good stuff.

    1. Hi Solace,

      Thanks for the compliments. All these are fresh ideas while some are random thoughts. I hope I don't run out of ideas soon.

  2. Replies
    1. Hi UncleCW,

      Water flows means cai shen dao? Haha

  3. Hello SGYI,

    I like your metaphor ;)

    Stale water is dead and smelly. Some people reek of "bronze smell"...

    They just hoard money and super kiam siap gui.

    1. Hi SMOL,

      Bronze smell is yucky. Money is just paper. Hoard too much paper will be useless. Oh well, they changed money to plastic already so maybe will last longer. :p

      Kiam siap gui sounds familiar. I thought I heard you said it elsewhere before? Haha

  4. What da you say? Cash flow? Yes! manage your cash flow correctly and your assets shall multiply.

    1. Hi temperament,

      Oh yes. Cash flow, money flow, water flow. As long as it flows correctly it shall multiply.

  5. Highest level of investing is Water Investing.

    Water is formless!

    1. Hi Uncle CW,

      This reminds me of a famous quote by Bruce Lee.

      "Be Like water making it's way through cracks. Do not be assertive, but adjust to the object, and you shall find a way around or through it. If nothing within you stays rigid, outward things will disclose themselves.Empty your mind, be formless. Shapeless, like water. If you put water into a cup, it becomes the cup. If you put water into a bottle, it becomes the bottle. You put it into a teapot, it becomes the teapot. Now, water can flow or it can crash. Be water, my friend."

    2. Invest like Shark.

      Invest like Wolf.

      Don't invest like Rabbit.

      Eat little little at a time. A little sound . Run like mad.


    3. This is interesting. It's true also. The irony is those who did not run away emerge out better. When the rabbits run away, the wolves and sharks goes in. LOL