I finish reading a book today that teaches us how finance interprets in real lives. What are some main components in finance? The answer is quite simple, which are time, risk and return. When you invest your extra money, the first thing you consider is risk. Can I get my money back in future without affecting by inflation? To be honest, that is a tough question. If you know the exact risk, most of people probably will take the chance and boost the equity price. Then, it losses attractions to many investors. However, life is just like a long-term investing. We can use our wisdom to invest and fulfill ourselves.
To begin with, life is full of challenges and uncertainties. You can never know what will happen next, but you can be both the director and the actor in your own film of live. When you were born, you cannot choose the family you want which is venture capitals you have in investment. Social stratification nowadays make it less possible for a poor child to get good resources in life. He or she has to bear more responsibilities even he/she is in young age. The same thing in finance is that you have less money then you will return less. Many people complain that if their parents give them enough money, they will earn a lot, just like Wang Sicong who earned 4 billion after he was given 4 hundred million. However, without practical skills and unique perspectives, you may never make it. For most common people who do not have enough money, they can use leverages in their lives to increase their opportunities. They can use their friends and even social resources such as reading more books to boarder their horizons which can finally upgrade their to new levers. However, their is a fact that high lever people occupy many privileges in this society. How can we use finance wisdom to break through it? It is extremely hard, but it is possible. In finance, before investing, people will analyse many historical data and available private news. They try to use math models to quantificat complex analysis into index or Beita. Also, they communicate their thoughts with others to get market quotations which can better help us understand the world. Likely, we should learn how to how to analyze and how to cooperate with others. In this technical world, no one can win alone that is the reason why companies merger a lot to strengthen in this competitive business world.
Also, no romance without finance. In elite field, many individuals even families let their offspring get married in order to have win-win effect. For most of us, 'bread' in affections is also important. Many couples divorced because of uptight incomes. They can not fully enjoy love if they cannot even feed themselves. Thus, nowadays people choose their partners due to march principle rather than love itself. It is a dilemma that we want both bread and love in our relationships. In my opinion, the best way to solve that is I own enough bread and you give me love.
Anyway, Life is like a long term investment which we need passion, confidence, intelligence and rationality to adjust our strategies and make profits.
