by Dave Miller
The bare ground of the empty garden was being overrun by weeds in a short few weeks. So I tilled the ground last night and scattered the Jerry oats. With the dirt knocked loose and the weeds stunned the oat seeds I spread can find a hold and quickly overpower the weeds.
The seed is planted and has a good chance to grow. No weeds to hinder the growth. Fertile ground to root into. At the sight of the greenness we will see the fruits of the labor, our toil combined with productive soil coming to fruition.
Is neutrality possible? The first law of motion says: The velocity of a body remains constant unless the body is acted upon by an external force. So something at rest stays at rest. Unless an outside force affects it. It stays at rest if nothing affects it, but something is always affecting something.
To invest or not to invest. That is the question.
When I say invest I mean good investing, not the I’m-too-uncertain-so-I-will-stick-it-in-bank flavor of investing.
Good Investing; By making good investments of time, money and knowledge you will grow in confidence and intellect. When you see your seeds multiply, your heart will be happy and content. This is not always easy, it’s work, but it’s rewarding.
Bad Investing; When investments go bad they deflate the morale, they squash and humiliate. Your attitude and life will be affected, like it or not, it just will.
Neutrality; By not investing your money, holding it in cash or putting it in a savings account for ½% interest a year, you are not moving. As Isaac Newton said, a body at rest stays at rest unless affected by an external force. The external force is never at rest. If you are not investing wisely you can go backwards, but if you do not invest, you will also go backwards. Neutrality is not an option. The outside force is in motion and if it is going faster than you then you are going backwards.
Here a few reasons why “neutral” money holding doesn’t exist.
- If you invest at a ½% in the bank you are (1) not keeping up with inflation (2) your reward sucks so the incentive to save more is squashed.
- When sitting on cash you (1) are not keeping up with inflation (2) are prone to spend more than needed because it’s visible and accessible. Money in your pocket has a way of disappearing.
- Did I mention inflation? According to our government inflation has been around 2% to 3% but has jumped to around 3.75% last month. Now we could spend a whole paper on the inaccuracy of these government statistics but we will let it go for now. Nevertheless, they may be inaccurate but the experts agree they are pushed down, meaning in reality they are higher. So if you are not making in excess of 4% to 5% you are floating backwards. Your money will buy less in the future.
The ground does not like to be barren. It will cover itself. Its default is weeds. So if you choose to sit by idly it will cover itself with weeds. Do I want weeds? No. I will work, till, and plant to create an environment that allows the ground the produce. Today it’s raining steadily. I smile because I planned and prepared.