Investing for Life: #CollegeEconomist view

Investment:

"An asset or item that is purchased with the hope that it will generate income or appreciate in the future. An investment is the purchase of goods that are not consumed today but are used in the future to create wealth."

The choice to invest in something by persons is generally for some monetary gain.  What if we can view investing for  its practicality. Using the basic principles to improve other areas of everyday life.

'We choose to devote invest or make important certain things with an expected end.'  

'The wisest investment one can make is in himself'

Two nice quotes about believing in yourself and making the best of your situation which are all good and sound really nice but how does that help you when you seek practical answers to the problems you face. I'll touch on three types of life investments;
1.Education
2. Romance
3.Personal Finance

EDUCATION
Traditional school takes approximately 20 years from Kindergarten to College. Education is a fundamental right of a child, but tertiary education is option, with tuition cost averaging $20,000 USD, its proves to be a very costly option. Many persons however who still view education as a right at the tertiary level tend not to view it as as an investment. For the number of years spent post secondary education there is expected to be a positive relationship/correlation with expected average annual income. In other words the longer you spend getting professional qualifications the higher your salary will be. The problem with that assumption is in perfect worlds with no 'bad[inefficient] economies' that would be the true but the job market is an extremely competitive place. Education is viewed today not necessarily as personal development; but only a  prerequisite training to enter the job market.
This leads to question: Is it possible to be successful in the Job market without the adequate/necessary levels of education? The is a simple 'NO', in today's economy the general case is that you must have a degree to get a good job, you might not get rich, but at least you will be able to survive and have comforts. They are extreme cases where people drop out of school and become billionaires, but check your reality those are the exceptions never the rule!


ROMANCE
I recently heard the term emotional investment and light bulbs went off in my head. In fact this is the very reason why I wrote this article in particular.
The question is: How invested should people be in their relationships?
In biology, there are three main types of relationships between organisms: Parasitic(one benefits the other suffers), Symbiotic(one benefits,the other is indifferent) and Mutualistic (both benefit). To understand the level of emotional investment for these types of human relationships we must tell stories.

A Parasitic relationship is one in which a partner depends so much on the other to the extent that the other partner wishes to leave the relationship but takes a while to do so. The Parasitic partner can be described as the one who is abusive, annoying, threatening, has major insecurities(unresolved issues), and extreme emotional attachment/ detachment. The parasitic partner does not allow their partner/spouse to be comfortable with their identity.

The Symbiotic relationship represents the popular model in which one partner invests all their time, effort, love and emotions into their relationship while the other partner sits back and remains indifferent. The symbiotic relationship usually has the more invested partner being the female as she in more likely to spend more time concerning herself with the duties in the relationship while the male tends to downplay or cast off his responsibilities to the relationship/marriage/union. Symbiotic relationships are usually the ones maintained when couples are not on the same level (Education, Emotion, Religion,etc).

A Mutualistic relationship represent the hybrid model of relationships where both partners are equally invested and equally profit from their investments made in their relationship. Mutualistic partners tend to exert more compassion and understanding towards each other and each partner caters for the needs of the other where humanly possible. Mutually invested relationships tend to outlive the other two. If you speak with older couples they assert and encourage that conversation with your partner is very important to remaining happy.

Questions:

1.Does the level of emotional investment affect the outcome of the type of relationship?

2. How do you test your level of emotional investment?
3.How much emotional investment is enough?

PERSONAL FINANCE
When investing in a company, instrument, real estate or capital. The reasons for which one wishes to invest are of key importance. Almost everyone who wishes to invest, invests with the intention of realizing profit income. But when it comes on to taking to risks the potential outcome of a large payout is blunted by the preconceived fear of losing off of your investments. Many invest with their heads, that is how can I make the most money by investing the least amount. Others invest emotionally, so they will buy for example property in the Caribbean or else where because it could fit in to making them happier, they take into account their level of satisfaction after realizing the most gains.
The most important type of investing however is that one where you yourself are most invested in the process, this is investing with a plan from an informed perspective. These investors are financially literate and realize the most gains while others who are not so literate have to rely on wholesale advice from financial institutions, the media and friends

#CollegeECON  #CEconomist #CollegeEconomist