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Building Wealth is a Waiting Game
Don’t rob your future self
If you are serious about building wealth, get good at “waiting” for the compound principle to work in your favor.
Patience is an asset when you start building wealth.
If you know all the complicated principles and rules of investing but can’t endure the long wait to see your investment grow, you will miss out on significant gains.
Charlie Munger, the vice chairman at Berkshire Hathaway, was right when he said, “The big money is not in the buying or the selling, but in the waiting.”
Building wealth is an infinite investing game. It takes time, a lot of time, and patience.
It is not easy, as many people find investing money a psychologically draining experience at times.
However, it is very worth it in the end.
Warren Buffet once said, “Only buy something that you’d be perfectly happy to hold if the market shuts down for ten years.”
Remember, Warren Buffett and Charlie Munger have been investing for at least four decades. They’ve leveraged compound interest for years.
Einstein said that compound interest is the “eighth wonder of the world,” Einstein said.
“He who understands it, earns it; he who doesn’t, pays for it” he observed.
It’s so powerful that it can turn a penny into $18,000 in 40 years.
That’s because of its exponential nature: interest compounds on top of interest, and the more you invest, the faster your wealth grows.
To build long-term wealth, your money needs to grow. The best way to build wealth is by using compound growth.
Compound growth happens when your investments generate earnings that then generate more earnings and so on.
Just like the snowball effect, this will allow your money to grow exponentially and help you build wealth faster than you might expect.
Since compound interest is the most powerful force in the universe, it’s worth spending some time understanding how it works and how to use it for your own financial success.
