As Christmas approaches, we can’t escape the tale of Ebenezer Scrooge. When it comes to investments, Magenta has their own Miser’s story to tell.
A Miser had buried his gold in a secret place in his garden. Every day he went to the spot, dug up the treasure and counted it piece by piece to make sure it was all there. He made so many trips that a Thief, who had been observing him, guessed what it was the Miser had hidden, and one night quietly dug up the treasure and made off with it.
When the Miser discovered his loss, he was overcome with grief and despair. He groaned and cried and tore his hair.
A passer-by heard his cries and asked what had happened.
“My gold! O my gold!” cried the Miser, wildly, “someone has robbed me!”
“Your gold! There in that hole? Why did you put it there? Why did you not keep it in the house where you could easily get it when you had to buy things?”
“Buy!” screamed the Miser angrily. “Why, I never touched the gold. I couldn’t think of spending any of it.”
The stranger picked up a large stone and threw it into the hole.
“If that is the case,” he said, “cover up that stone. It is worth just as much to you as the treasure you lost!”
The Miser’s tale highlights two important point. Firstly, and a sentiment we wholeheartedly believe in: life is short and should be enjoyed. The Miser wasted his life concentrating on money and failing to see the true value of life itself. Secondly, it demonstrates the mistaken belief that ready cash is a superior form of wealth. We’ve written before on the mistaken believe that cash is king. Somewhere along our monetary education journey it’s become hard wired that cash in the bank (or under the bed/ in the drawer/ stuffed in a sock!) is a superior form of personal and financial safety. If you’re squirrelling your savings into an ordinary account each month, then you’re no better off than our miser friend here. We reiterate our message that, whilst it’s good practice to keep 3-6 months of easy access cash for emergencies, there are far better options available for those looking for both short and long-term investment and growth opportunities. At Magenta, we’ll work with you and help you identify your goals and aspirations. We’ll then direct you on the best possible way you can ensure your money works hardest to make it happen.
Don’t be like the miser; if you’re pondering over how best to make your pennies work for you, get in touch for a friendly chat!