Money, the Movie Star. Or maybe not?

We could spend a lot of time analyzing the causes of this, but it's not going to get us anywhere. But if we are reading this, it is because at some point we have realized that we lack such financial education (or we could improve it), and now we are starting (or have been for some time), developing it by our own methods.

The Cycle of Money

One of the concepts most often misunderstood is the function of money itself, since many of us see money as an end in itself, and not as what it is, a tool. A tool that has to serve us to achieve the objectives that we have had to define previously.

Almost all of us, from a very young age, have been taught the importance of EARNING money; for this we have to study and/or work; and the more we work, the more we will earn.

The next thing we have been taught is that the second step is to SAVE; it is not enough to spend everything, but part of what we earn must be saved (for the future, for when we get married, in case of an emergency, just in case...).

But in most cases, we are not taught what else to do with the money, or we are left with very basic and inefficient alternatives on how to make it work for us.

This is the third big leg that we are missing and that we are going to try to develop here. It is the concept of INVESTING.

Investing prudently, minimizing risk (never eliminating it), on a regular basis and with what we can at any given moment, but always seeking to obtain a return higher than inflation, our enemy.

In future posts we will see different types of investments and what are their main characteristics, as well as those that most interest us.