There is no difference between growing a tree and growing your money. In other words, all you have to do is to simply apply the cultivation methods applicable for growing a tree to your finances and you will be suitably rewarded with a “fruitful” tree.
Let’s see how this works out.
Needless to state, you must have seeds to grow a tree. But, more importantly, these should be good seeds. Bad seeds will give you bad trees. Likewise, to grow money you need investment products. More importantly, these should be good products. Bad investments may not only give poor growth but could also lose money… leaving you empty-handed.
But having good seeds is not enough if you don’t have the proper knowledge. If you don’t how to plant the seeds, how to water them, how to fertilize them, how to remove the weeds, etc., etc., your seeds will soon die away. Similarly, your investments too will wither away if you don’t know how to manage them, how to add to your investments, how to remove the under-performing assets, etc., etc. If you lack the right knowledge on farming (finances), you must take help of a gardener (financial adviser).
Next, as is well know, your trees won’t grow in a jiffy. Depending on the type of seed you sow, some plants may take a few months while others even a few years to grow and bear fruits. You have to give “proper” time to your plants. But when it comes to our investments, we want to be a millionaire overnight. We hardly give the time that is required for our investments to deliver returns. Hence, we often end up with poor returns or losses. This requires a drastic change in our mindset. Unless we are patient enough, there is no hope of making money.
There is one more issue… it is difficult to grow a tree in a desert. You need a good soil for it. Similarly, it is difficult to grow your money in a weak economic environment. Since worldwide the economy has been witnessing difficult times in the last few years, growth of money too has been stunted. But now the economic scenario across US, Europe and the emerging markets is improving. This is likely to provide a ‘nurturing and caring’ economic climate that will aid in growing our money tree.