Tuesday, 9 December 2014

Entrepreneurship or Saving for Retirement (Which Way To Go)


A few days ago, I was doing my usual search on the internet trying to find some information like any other day. I came across a banner ad on one of the popular websites i visit and thought that the ad was very interesting. It was an ad for a mutual fund or an investment account I couldn’t really tell which financial services the ad was trying to sell. But the ad simply stated that if you saved an amount of money say (X) over a period of time, you were going to make enough for your retirement and a substantial amount at that. This really got me wondering. For some time now I’ve been battling with the concept of ‘personal finance’ in my head. What does that term really mean? For me, anytime I hear the word personal finance my mind automatically goes to savings. Saving a portion of your salary/profits so that you can have a better future. I see retirement as something that is really far away because I think am not too old.  I see personal finance and savings as something which is mostly pondered upon by people ageing close to retirement. Because technically they are the ones going out of job soon so maybe they should be thinking about retirement/personal finance and savings. Not me a young blooded 20 something year old.  Though I trick myself into thinking that savings is for people who are ageing and for individual with family and children to look after, the pangs of personal finance comes to bite me one in a while. Because i go on a little guilt trip when i see how little my savings is so i tell myself i will start saving in my 30s. What i’m gradually realizing is that savings is a habit and if its not cultivated now i might never save.
But my obsession with entrepreneurs and entrepreneurship have made it clear to me how entrepreneurs find it difficult savings. An entrepreneurs quest to make a difference with their idea will go all lengths to make their ideas come to life. Sometimes this means investing most or all your savings into the idea in the hopes of making a return one day. That is why entrepreneurship is about risk its about being a bull or a bear. And i want to be the bull rather than the bear. I’m at a point in my life where my ideas matter more to me than the money i want to save. Because the supposed savings invested in my ideas as an entrepreneur may earn me a million fold return on my investments. I’ve read about entrepreneurs and successful people who risked it all financially to build something great and that is the type of risk i want to take at this stage in my life. For now, ‘saving towards retirement’ seems like a concept that’s almost laughable because i see it as something that is further away. The beauty of taking risk is that most of the time, it might not work but if works you get to build something successful and truly great. Entrepreneurship and startups is such a steep learning curve therefore failure can also be a great learningprocess.
Being a risk taker at heart and not having finances figured out whiles taking risk doesn’t seem like a good idea. But my ideas has to take centre stage before savings come to mind.





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