If you want to understand the mystery of the universe, think in terms of Patterns. The Universe is chaotic and also structured. And each structure follow various principles of universal patterns. Some structure follow only single pattern and some follows combination of different patterns. Let’s observe the evolutionary tree, which is literally like your family tree, but in this case ‘the family’ is every living being who ever lived in whatever form. So the evolutionary system is fractals of life and the life flows from parents to children, likewise the monitory systems are fractals of transactions and the money flows from one person to another.

The way I see it, if I want to automate my money, it should follow 3 rules of automation.

• Maximize the in-flow of money
• Invest to gain long term rewards
• Minimize the out-flow of money

For instance, I invest into stocks with good dividends because it increases the in-flow of money, then I re-invest the dividend within the stock, which means my portfolio is growing without my intervention, and since this is automatically implemented, I don’t have to pay additional fees thereby decreasing the out-flow of money.

The other universal pattern is compounding effect,

Almost everything in the universe compounds over time, this compounding effect is true in both positive or negative direction. The principle is very simple, if you consistently invest into anything, whether it’s your passion, monetary investments, reputation; for the first x years it’ll grow slowly and out of nowhere it’ll grow exponentially, and that exponential growth is due to compounding effect. The opposite is also true where it’ll fall slowly for a period of time and then I’d out of nowhere it’ll fall exponentially. So applying this principle in financial investments can exponentially grow my portfolio in the near future.

and at the core of it is diversity.

Nature is beautiful because of it’s diversity. And likewise the diversity of the portfolio makes the outcome beautiful. Diversity is not only efficient but also risk averse. And the best of all, there are plenty of asset class to diversity the portfolio.

Combining these principles I want to auto-investment and sit back with patience, like a farmer, and observe my seed investments sprout and grow into a “money-tree.”

The post Monitory system is a fractal of universal patterns appeared first on .