Smartideabox

Leaving your money on a savings account is a waste of your money. The amount you can earn depends on the bank you’re using obvisously, but it could amount to 1.5% per year, for instance. Now imagine you live in a country with a yearly rate of inflation higher than 1.5%: you loose purchasing power over time. By simply investing in the Stock Exchange Index (SMI, FTSE, NASDAC, DOWN JONES, etc…), you probably end up better off than by leaving your money on a savings account.

There exist so many profitable opportunities that are not exploited because people don’t know how to invest or never heard about it. Millions, if not billions, of employees (salespersons, customer service, marketing, management, logistics, engineers, maintenance, etc…) who have functionning brains, who are able to understand the basic principles of finance, to count and to use internet, don’t invest  in the stock or bond markets because they are affraid of it. They all believe it is a very risky thing to it. But isn’t it even more risky to leave our money in the hands of people of play with it like in a casino or generate profits from mathematical formulae, ruining the confidence on financial markets, diminishing the value of work and causing many companies to go bankrupt and high levels of unemployment?

I think that selling basic market finance formations to companies would be very profitable for individuals, for the companies themselves and for the global economy. The courses need not be long, but simply explain how to invest, how to evaluate a stock, interprete an article, use an investing platform on internet, what are the risks and opportunities, as well as showing safe ways to invest money.

The employees would end up better off thanks to more independence and more money in their pockets (as long as they invest safely).

The companies would end up with employees who have a better understanding of money (which is the basic goal of a company). It would also create an opportunity to encourage employees to buy their own company’s shares, a sort of financial fordism (Henry Ford encouraged his employees (using higher wages) to buy his cars, here the employees would be encouraged to buy their own company’s shares (buy offering education)), which trully benefits the company, creates a additional feeling of membership, and increases people’s motivation to work hard (Just like CEOs when they are paid with stock options). Also this would be a step ahead from protecting the companies from the mathematical-casino-finance model, where traders don’t pay attention to the business model and viability of the company but rather to the arbitrage trading opportunity they can realize on a 2 hours interval of time.

Finally, this would lead to a more conscious financial system, where THE CROWD would invest in companies they believe in.

I believe such a project should be supported by the government, the companies and its employees. It would be nurtured by the deep fear that arised from the financial crisis.