These are excerpts from the author’s book “Deep,” which contains eight of his small books published in the form of Wisdom Literature covering different aspects of life: Facing troublemakers, dealing with pain, personal financial issues, gastronomy, reading, criticizing, inspiring, and feeling always good to go.

Series 3: Pocket – Your Personal Economy

Week 42: The Best Investment

 *  No single investment is the best. The optimal types of investment depend not only on your resources, tendencies, and capabilities but also on your age and on your previous experiences in investing and life in general.

• How you spend is the basis and the reflection of how much you save. Spending and saving are two complementary processes, each of which leads to the results of the other. A thoughtful balance between spending and saving is the beginning of the road to good investment.

• Your investment does not mean that you wait while you save an amount of money and then see what you can do with it. Sometimes waiting misses a rare opportunity. If you can deduct a significant part of your monthly income as a fixed contribution to a well-thought-out investment, it is not necessary to postpone the opportunity waiting greedily for a great investment you dream of.

• A better investment is closely related to the culture of the place. It’s OK to deviate from the ordinary sometimes, but slow down and think carefully before knocking on the door of an unfamiliar investment.

• Investing within a heavily popular field is just as risky as investing in a new one. With the widespread investment, there is the risk of market saturation, and with the new investment, there are no previous experiences that you can benefit from their lessons. Each case has its risks, which should be carefully considered before deciding to start.

• The most important thing to avoid when deciding on any investment is overconfidence and extreme hesitation alike. Study your project carefully, and consult more than one whom you trust for their experience and honesty, and take your decision after that. Do not forget the necessity of monitoring, auditing, and updating throughout the investment period.

• Do not hesitate to take the decision to withdraw from the investment whenever it becomes clear to you that things are not going in the right direction. If necessary, sacrifice some money in the middle of the road to avoid further losses.

• It is OK to be taken in by the splendor of a great investment that brought huge profits to its owner, but what suits you may be another investment that is less glamorous. Look at all the business around you and choose what suits your abilities. Encourage yourself to advance your ambitions, but not only by chasing after not-well-thought-out aspirations of great and quick wealth.

• With the right choice, sincerity, patience, and love of your work, you can turn a similar project that brought another person an average revenue into a huge project with great profits.

• Eventually, you are the only person who has to decide which investment is best suited to you, no matter how much advice you hear from others, including trustworthy confidants and competent professionals.

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