Similarity between Investment and Life

Investment and life both terms are poles apart when it comes to finding similarities between them but when you look at closely then you will find many similarities between investment and life, let’s look at some of them –

  1. The first and foremost similarity is that both life and investment have full of ups and downs, just like life is full of joy and sorrows in the same way investment are full of risk and rewards. In life sometimes you are ecstatic and sometimes you are depressed, in the same way some investment give bumper rewards while some investments turns into losses for the investor.
  2. In life we have many relations like father, mother, sister, friend, wife and so on and at every stage of life an individual require different relation like at young age an individual require his or her parents the most as we grow up and go to school or college we need friends and after completing education and getting a job we depend on our partner. In the same way investments has many categories like gold, fixed deposit, stocks, real estate and so on and at different stages of investing an individual require different asset class like when we start investing we can invest aggressively and take risk by investing into stocks and real estate so as to earn higher return and as we become old we need some security and that is where fixed deposit and bonds help us which give stable returns.
  3. In life when we are young we don’t know anything and we keep learning new things everyday till we become mature. In the same way when we start investing we don’t have any idea about investment but as we progress we keep learning new avenues of investment, how these investments give returns and so on.
  4. Both life and investment are unpredictable just like life is full of surprises and shocks, in the same way investments are full of surprises as well as shocks. Hence just like nobody can predict when or how life will end in the same way nobody can predict the exact time by which one will get return on his or her investment and also how much return one will get on his or her investments.
  5. In life if we are not disciplined and not have any patience we end up losing many relations and also we are not able to achieve our goals, in the same way in case of investments if investor is not disciplined and impatience with his or her investments then chances are he or she will end up making losses on his or her investments.
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