Consumption vs Investment

Something strange happens when I start considering investing, I start to fear loosing my assets, loosing my hard earned money but when I go shopping the contentment is here and now, I buy stuff, it makes me happy, it feels real and I don’t feel ripped off at all. In fact the more I think about it the more it should be the other way around…

Consumption means it is consumed literally, at least a corporate accountant would consider it this way and depreciate the item you just bought as quickly as he can and not just for tax purposes; if not considered as expenses, this type of stuff is just sunk completely in the production process, transformed completely, consumed and never to produce any value again. Same applies to my mobile or whatever consumer product I buy. Even though consumer electronics seems to last and deliver value long after we bought the devices, the end result will be there one day or another: malfunctioning or not functioning at all, rendered obsolete, faulty beyond repair, down to zero value.

Investment means it is a more long lasting thing. It will not disappear overnight and retains some long term value even if it depreciate overtime; however it is subject to volatility of share prices and market value and can eventually go down, it is here to last and hopefully generate some dividends.

There is a certain amount of risk in starting investing money but there is always a 100% chance of loosing it overtime if I spend it.


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