Self Improvement Through Technology

I just bought this book. Currently reading it.

It contains some new things, and some old stuff. One message is to invest your money in something that can bring you more money. But it is easier said than done. What are the common avenue for people to invest - stock and trust fund. More risky…properties. It can be land, house or anything that you can rent to people. One of the author of this book started with renting advertising space…this is in the real world not online advertising space. Then he slowly move to properties.

Investing to something that bring you money is basic concept, the more refine concept is to invest in something “using other people money” which bring you money. “Other people money” - example is bank…if you can get the loan. Otherwise borrowing other people money. The trick of the trade is to find a business that give you return bigger than the interest of the loan that you take. Say…if you manage to get a loan with 3% interest, invest it in a business that returns 6% profit within the same period, then you are making 3% of net profit after serving the loan + its 3% interest.

For muslim, you can not go for the fixed interest/profit way of doing business - it is haram. It is considered as riba. So you should follow the defined “Al-Mudharabah” method which is “profit & loss sharing”. You can check the detail definition in any of the islamic bank website on how this is done.

Maybe next time I will write more about what I find interesting in this book. Meanwhile if you have any interesting finding, or suggestions on investing feel free to put it in the comment.