Some people say, “I am not investing.” That is a misconception. The moment you own assets, you are investing in something. Let’s say you have deposited $1,000 in cash. If the interest rate is 1%, your cash will grow by 1%. If the inflation rate is 2%, prices will become 2% more expensive. As a result, you will no longer be able to buy the goods you could with $1,000. Moreover, since the Federal Reserve aims for a 2% inflation rate, it is wise to assume that prices will generally rise by 2%. reference: Why does the Federal Reserve aim for inflation of 2 percent over the longer run? In…

Understanding the reality of capitalism will enable you to develop asset management strategies. Capitalism can be summarized as follows: In other words, to be freed from being a worker, you have two options: become an entrepreneur or an investor. If you have ideas to improve society or the enthusiasm to motivate others, you might become an entrepreneur. One of the reasons I started this blog is to improve society. My knowledge and experience might help someone. However, I don’t have the enthusiasm to establish a company and hire people. Thus, I concluded that I couldn’t become an entrepreneur. Becoming an investor doesn’t require ideas. You can start with as little…