Personal Finance Investing Teacher – A Squirrel

Let’s do a small exercise that will give you a break from your stress level and also help improving your investment strategy.

Next morning, grab a cup of hot coffee and sit in your yard doing nothing. No matter where you stay in US, there has to be a squirrel in or around your yard. Relax and watch how they play and work. They can teach you much about personal finance investing strategies.

Watch how the sit in the squirrel’s cafe and talk to each other about the expensive acorn market. Notice their reaction when they read the new acorn tax legislation mentioned in today’s financial daily. They also read that the prevailing prices of acorn might go down due to excessive supply. Some squirrels go to others to discuss this issue and about their investment depreciation.

If you really see this happening, you can record it in your camcorder and sell it, which will definitely eradicate your financial problem. Or you might simply be hallucinating because such thing may never happen.

So, sip your coffee, take a deep breath, and watch what squirrels do. You may watch that they keep moving swiftly from one tree to the other, halting occasionally to enjoy an acorn. You may notice that they carry an acorn and run behind the trees to bury them. Sporadically, they are also seen having fun by chasing each other or running toward a relaxing bird.

If you think from a financial perspective, a squirrel is an ultimate long term investor. Day after day, they work hard to improve their investment portfolio by grabbing the acorns dropped from the trees. Some of the funds (acorns) are consumed instantaneously from their overall income.

They invest their income (dropped acorns) by hiding them in a diminutive hole behind the tree for future consumption. If they need it in future, or to be precise, if they remember the hole next season, they will consume it or the investment (acorn) will develop in to a profitable, high yielding fund (a tree). As soon as they finish with the consumption, they keep finding new sources of income and keep investing.

Like squirrels, even if we have enough now, we must keep finding new income sources and invest the money. Like them, we must work hard to earn money and have immense fun when we are enjoying. Like the, make it a habit, to save and invest daily.

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