I don’t know who said this, but the quote goes something like this: If you want a thing, go find out how much it is and then pay the price. And every thing has a price. Meaning if you want a piano, go find out what its price is, and then pay it. Or meaning if you want to run a marathon, go find out how much it’ll “cost” (in time and energy and spirit) and if you really want to run a marathon after determining how much it’ll be, then pay the price and you will cross the finish line.
Compounding is magic. And if you’d like to learn more about Compounding, you might be interested in an article I wrote over at Wealth Meta titled The Eighth Wonder of the World - Compounding.
Many people call me Gilbert. I’m from New Jersey originally. And I went to college in the Midwest. And I moved to South America after graduating from that college in the Midwest. And I learned that if you earn US dollars (USD) or another strong currency and live in a Low Cost of Living Country, you’ll probably sooner or later find yourself whizzing away on a Hyperloop ride to Financial Freedom.
Do you consider yourself a discerning person when it comes to the financial services industry? Whether you do or do not, we can always improve a skill. Which means, you might be interested in a make-believe course I’m not offering (but maybe someday will) entitled “Calling Bullshit in the Age of Big Finance.” My fictitious course is inspired by a real course offered at the University of Washington named “Calling Bullshit in the Age of Big Data.
In addition to the Gilbert Index column, I teach and write about financial literacy at Wealth Meta. And I recently wrote about The Time Value of Money, which you can enjoy here. Wealth Meta is based in Portland, Oregon. And is a rare company in the personal finance world because they actually give you value—in the form of quality articles and financial calculators.
The fastest way to riches is to want less. It’s the fastest way because it’s fully in your control. It doesn’t depend on external factors as you’re the one to decide, and no one else, if you want less. First off, what is “rich” to you? And I’m talking about money. What does it mean to be “financially” rich to you? I think you’d agree you’re rich once you’ve accumulated enough money for all the things you need and want for the rest of your life.
Imagine you were to receive a direct deposit into your bank account for an extra $2,000 per month. And you receive this sum for no other reason than the good fortune of being a U.S. resident. What would your life be like? Would you create something? Would it give you more freedom? Would you invest it and save for retirement? Would it allow you to quit your job and start a business?
If there is one thing you can do today, right now, to improve your financial position, it is to understand compounding. And then find ways to take advantage of compounding. Because compounding can make you rich. The single most important concept in finance and investing is compounding. And if you understand it, your financial knowledge will be miles ahead of your peers and you will be on the fast track to Financial Freedom.
My name is Gilbert and I’m a money athlete. Which means I’m skilled with money. I’m a money athlete because although I come from humble beginnings, I’ve reached financial independence before the age of 30 thanks to frugality, saving 75% of my earnings, hard work, and the compounding returns of index funds. If you want to learn about money and financial independence, consult a money athlete. This only makes sense because a money athlete has mastered money and has acquired the necessary knowledge and habits.
I’m talking to an old friend for the first time in a long time. We dive right into a lively banter and start getting caught up. The conversation moves on to our families, and I ask my friend how his brother is doing. And he says (paraphrased): “He’s doing great. He just bought a house. He’s got a great job. He’s doing really meaningful work. Things are going really well.”