The Necessity of Investing
Starting to invest early is a crucial factor in growing your assets. But have you ever thought deeply about why? As Peter Lynch famously said, those who start investing early experience the magic of compound interest. In this article, we will delve into how early investors have significantly grown their assets and uncover their secrets.
The Importance of Investment Mindset
Here’s a story I heard. There’s a simple way to judge if you are investing well. If you’re an employee, sum up all the salaries you’ve received since you started working. Roughly calculate your total earnings from the time you started your job to the present.
There will be people whose current assets exceed this calculated amount, even considering their expenses. This is only possible through investment. Ultimately, it is the result only achievable by those who enjoyed compound interest early on. Most of these individuals have likely increased their assets through real estate. And this gap will only widen over time.
The Importance of Capital Income
There’s another indicator. If you were to sell all your current assets and convert them into capital income, could you earn more passive income than you currently do from your labor? This is a theoretical question, not a suggestion to actually do it. If the answer is yes, it’s a testament to successful investing so far.
Sense of Money
People who maintain a keen sense of money tend to live healthier and more disciplined lives. Valuing money ensures more rational decision-making when making choices.
Thus, I believe it’s important for everyone to take money seriously and manage it wisely. Conversely, people who trivialize money or consider talking about it taboo are better left alone for personal safety.
The Difference Between Income and Assets
Compared to 6-7 years ago, my personal spending has significantly decreased. It’s not that I’m forcing myself to save money; it just naturally happened. Spending money unnecessarily feels like a waste of not just money but also time and energy. This lifestyle feels lighter, simpler, and more straightforward. There are also significant mental health benefits.
Conclusion
Start investing right away. Not only will it help you grow your assets, but it will also prepare you for a better life. Maintaining a sharp sense of investment and consistently managing your assets is the key to long-term success. If you don’t start now, you might regret it later. I genuinely hope you can start immediately.