Investing may be the least important, but it can have a big impact compounding on a large volume over a lifetime.
The biggest problem isn’t the difference between compounding at 1 or 2% better it’s usually avoiding a wipe-out and getting set back significantly. A lot of wealthy people have done well at varying returns. It’s the ones who lose money that significantly sets them apart from everyone else. A knowledge base and understanding are most important to avoid those pitfalls, then the focus of growth comes into play.
Investing is the only piece of the puzzle you can outsource. Which can be powerful but also risky if you don’t have enough knowledge and understanding to decide what is or isn’t in your best interest. It’s fair to say almost all professionals are biased towards their profession. Without an understanding of the topics, it can be easy to be impressed and persuaded to participate in markets or in ways that aren’t aligned with your mission.
1. Learn the basics
2. Avoid wiping out
3. Continue to grow, learn and implement efficiencies
Once you’ve got the income rolling in and saving habits in place, that time and effort you put into generating income and disciplining yourself to save can now be directed to becoming a better investor.
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