Most people don’t realize that when you are young, you have the highest potential to become somebody extremely rich.
If you invest your money wisely, it’s very hard to screw up and end up with nothing.
As you get older, your wise decisions compound and pile onto each other, until eventually, your money is so good at making more money than you’d actively have to give it away if you wanted to stop generating money.
So what assets should you invest in when you’re young?
If you’re young, you cannot go wrong with index fund investing.
Everyone knows that you need to diversify your investments if you want to avoid risk in the stock market.
Well with an index fund, you just keep paying into it and you don’t have to worry about diversification because it’s already pre-diversified.
Every month just pays as much as you can manage into it and you’ll notice your wealth accumulating very fast within just a few years.
Imagine how far your money will go if you just keep paying into it.
I mean with all these years ahead of worry-free investing, you could make yourself very rich off of this and this alone.
Another thing that pays dividends and compounds onto itself is knowledge.
If you start learning when you are young, you have that knowledge to carry with you into your later years.
But not only that, the information you learn now can connect to information you learn later and help you form new ideas and ways of thinking that could make you very rich if nobody’s thought of them before.
Skills work this way too, in business, you are only limited by what you are skilled at.
If you want to build a business/invest to earn money, you need to realize that these things are just sets of skills and by going into business or investing, you find out the skills that needed in order to succeed.
For example, if you own a business, you should know:
- Business Systems
- Information Technology
And so on…
You don’t learn these all at once, but when you get into the business, you’ll notice the areas where you are severely lacking and you educate yourself to improve along the way.
Now, if you get in on this while you are young, you already have a headstart on life.
Most people will go to college, go into different kinds of debt (college, house, car), and realize after all that, that they made a big mistake.
Get in on the business game early and you don’t need to turn your life around later.
If you are young and you have debt, consider yourself lucky that you are reading this article because you can nip this problem right in the bud.
Some people take on debt when they are young, and instead of accumulating wealth over time, they are sucking all the money out of their futures over time.
The average person just accepts debt as just a part of life.
Newsflash, it’s not.
Back in the day before the government encouraged using loans to buy houses and college education, people were able to pay for them out of pocket without much difficulty.
Now, since these things are funded mainly by loans, institutions just charge whatever they want (driving prices sky-high) and people just pay for it because they’re young kids who don’t realize what a large burden they are taking on.
If you want something, you need to save up for it.
If you’re gonna take out a loan, make sure it’s for something financially productive like buying a business and that the thing you buy is able to service the debt.
There are exceptions to these rules and there are other things that I didn’t mention.
But the whole point of the article is to get you thinking independently about where you put your time, effort, and money.
Some of these things have a small pay off and don’t earn money over time like college (debatable) and a house or car.
Some of the things have huge payoffs (investing, business, and self-education) and will make you very wealthy in the long run.
Make sure you choose wisely.
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