What can investing teach you?

Made yourself a nice little bundle of cash? Before you go and throw your hard-earned cash on the next new luxury item, here's a different thought. What if you invested the amount into a solid scheme and multiplied your savings? Investing is making money out of money, but that's not all there is to it. If done right, the practice can teach you a thing or two about life itself.

Discipline

Once investing starts to give you returns, it can get addictive. Money begets money and you will wish to feed the hungry monster again and again. However, being able to contribute substantially to your investment will demand a change in your lifestyle. It will require you to make a monthly budget, follow it religiously and keep track of daily expenses. This may teach you to live well below what you earn, and seek your instant gratification in your investments, rather than on luxuries.

Patience

Anything worth having requires time to achieve. Building wealth is no different. Experts say that it takes about 10 years to build a sound investment portfolio and committing yourself towards that goal takes an insane amount of patience. The virtue can help everywhere in life and it's best learned while making money.

Emotional Discipline

Humans are emotional beings, but just like in life, one realises that acting too emotionally towards one's investment can cause losses. Seasoned investors know that ups and downs in stock prices are part and parcel of the investment journey and being too hasty in selling something at the mere hint of a fall in prices may not always be in the best interests of the investor. Therefore, chin up, bear down, enjoy.

Vision and Motivation

It is important to have a long-term vision and the motivation to hold on to it. Proper foresight is important if one is to commit oneself fully to the ultimate goal. It is human nature to give in to temptation and even the most disciplined person can slip up. It is therefore imperative to keep the motivation kindled and roaring.

The Importance of Money

The practice of making money, and increasing one's net worth can teach you, ironically, to let go of money-mindedness. There is a certain calculatedly carefree attitude that one must adopt, if they wish to increase their wealth and build it over time. This often involves letting go of micromanaging finances and taking calculated risks and chances every now and then, helping you breathe easier about things pertaining to finances. It can broaden one's perspective to things beyond wealth, such as personal growth, and education.