Smart Frugality. Smart Investing. Smart Life.


“Investing is the act of focusing resources on something, to get more”

The above is Jim Reynold’s definition of investing. Let’s dig deeper.

Investing – What is it?

To invest, you need capital. Capital is an accumulation of a currency. To have capital you need to save. Saving can only take place if you spend less than you earn. Traditionally we have been thought to save 5% or 10%. The truth is buying more does not make you happier. On the contrary, it might even create more stress, you have to maintain, arrange, clean and eventually throw away whatever you buy. Consumerism is the biggest con ever played on you and me. That means you can get buy while saving more, much more. How about 50% of you paycheck.  I get angry when I see capital wasted on nick nacks when it can be used to solve real problems. Consider the listings of startups on The Syndicate Room, most of them are solution engines to real human problems!

Focusing resources

We have three fundamental resources: Time, Energy and Money. The decisions you take with these three currencies becomes your life.
Focus of time, energy and money capital enables the creation of something.

That right something will eventually “get more”.

Focus creates a deep connection with a project. This focus creates economies of scale and economies of experience. This is how value is created.

For example; Bitcoin is the result of focus of two ingredients. At first time from a computer engineer and there is also an ongoing need for energy to maintain the mining. That focus created Bitcoin, something which I believe has many more times the initial investment used to create it.

Building a house takes a lot of resources; manpower, diesel, architects and engineers. This focus of resources creates an asset the house, which can then be used to generate a yield. Trading house shares on Property Partner enables you to capture that focus.

On Something

Repeat; time, energy are money are the three fundamental currencies we have at our disposal. These can buy everything except life itself. For Example, Learning how to invest in Mintos, will make your p2p investments better. But ultimately will your life be better? Life itself is only worth living if it is fun and happy. Ultimately all investments in which an investment of time, money or energy are made need to yield fun.

Get More

Get more of what?
Money, Time and Energy,  are only transitory forms of value. They need to be converted to “fun” to be of any value.

There are many definitions of fun, all are subjective. Learning, Philanthropy, Financial Independence, Building Something and Globe Trotting are all correct in the right context.

At (III), the definition of fun is able to pursue a life free from the shackles of the 9 to 5. Get more of freedom because Freedom is fun.

It enables you to discover many ways of having fun.

“Investing is the act of focusing resources on something, to get more.”