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Who Earns More Money - You or Your Money?

I was giving a lecture to final year MBA students. I asked them, what are the ways of earning money. Obviously they had lot of answers. But I asked why don't they think of money earning money? They obviously guessed that I was talking about 'investing' and they agreed, yes, that's also a way.

Then I asked "between you and your money who will earn more money, say after 10-15 years from now?" Everyone said, they themselves will be earning more than their money, obviously as I guessed.

Leave alone students, most people, including parents of many of the students, even with decades of work experience have a situation that they earn more than their money. So, most people 'vouch for the fact' that they are better earners than their money.

That's because they worked hard for money and never let their money work hard for them! I can give you many examples.

Many bankers working hard for banks save their money in Bank Deposits than buying shares of the bank they work for. They believe, bank is going to be there standing strong to pay them interest in future. They have no doubt they will retire from the bank couple of decades later. They work hard and give their money the luxury of working lazily in the bank deposit.

Similarly and little contrarily, an IT professional or an executive working in a reputed IT / multi-national company, which he / she takes pride in telling others to be working there, works hard to be recognized in the organization to climb the corporate ladder fast. He / She puts himself / herself in challenging roles and uncomfortable assignments or schedules or locations and even changes jobs for faster growth. They believe their companies are great brands to work for and they will be growing further, though they are not very sure of retiring from the same company. They aren't also some times very sure of their job security. So, they think they can't put their money to risk. They give all the comfort to their money that they themselves don't have by allowing it to lay lazily in the bank deposits than investing in the shares of the companies they work / wish to work for.

So, in this situation money is never allowed to unleash it's potential. If let to, by investing that money in stocks of those banks and MNC's, it will show that it can in fact earn more than these people who earned it.

Make your money more productive, let it work as hard as you, don't give it the comfort that you don't have yourself. Let it create wealth for you... let it buy more happiness for you! Wonder how? This Article has some tips.

Comments

  1. Nicely explained how money can earn more than human being

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