What are the Differences between investment and saving: The Pinata, the Trojan horse and the chariot of fire.
I attended many birthday parties as a child. But none with a Pinata. I can only imagine how much fun it would have been for the child I was and the kids I grew up knowing. Some would have cried their eyes out and fought over sweets, biscuits, and everything else the parents would have put in the Pinata. I would have been happier smashing the paper mache than rolling in a fight to grab sweets and biscuits.
If your parents’ investment in making your birthday memorable, you can be thankful if a Pinata was part of that experience. But knowing what lies inside the horse partially takes the magic away.
Saving is like putting gifts in a pinata; you only get back what you put in it. Sometimes, you even get back less than what you put in. It gives you a false sense of security and excitement that has the potential to evaporate into thin air.
Saving instead of having an investment is not an entirely bad thing. This is more so on days when it might rain. On such days, your Pinata might look like an actual horse and take you to safety. You end up being grateful for something to fall back on.
Savings can become like a Trojan horse, too. I know that this is a “head wobble” moment. Trojan horse connotes something negative, but let us consider something as disastrous as inflation. It eats up the value of your savings, and what you thought you had becomes less valuable and loses its capacity to satisfy a want.
Saving in the bank comes naturally to most people. Our most natural worry is always to keep our money away from thieves. The bank will promise that your money is safer with them than under your pillow.
That is the truth. What they will not tell you is how the investment works.
Investment is how they make massive profits, so it is vital that they keep that away from you.
But here, I expose that little secret to you. The bank is like the Pinata at the birthday party; What you put is what you get.
But money can be more than something you keep safe in the bank.
It results from your hard work, and we can give it a life of its own. It can grow and set you on your way like a chariot of fire.
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