While there are many reasons, the reason I pursue stocks is to achieve financial independence and financial independence opens up your choices. Those choices enable people to make the decisions they want to pursue and avoid situations that they don’t want to do. Furthermore, pursing stocks can result in “high octane” returns, if done with a steady hand and emotional intelligence.
One of the most central challenges to financial independence for many is wanting too much now. Investing is the tradeoff between the future and now. More for the future requires giving up some in the present. Unfortunately, many are unwilling to do the tradeoff. For those borrowing for consumption versus a business purpose, they are taking away tomorrow’s living standard to feed their current lifestyle. For me, I just say “No!”
My youngest son used to think that billionaires, like Bill Gates, could have whatever they wanted. My response was Gates can have a heck of a lot, but even Gates has limits. Over the centuries, many wealthy families have lost all their wealth because they spent more than they had. The Vanderbilt’s are a good example of this.
Many people are living “the high life” now. It is their choice to pursue that way of life. Many of the same people, often dread going back to work each week. They may be doing a job they distain, but they have to return to the drudgery because their current lifestyle requires regular cash flow to sustain it. The result is a constant ride on the treadmill. This ride can be detrimental to their health, wealth, relationships and sanity.
My mother raised four kids working 3 jobs, so I learned early on about wants and needs. We all have wants, but what do we need? Don’t confuse the two. I consider myself and my siblings lucky to NOT be able to get a lot of what we wanted. There is nothing like adversity to teach essential lessons that stay with us for life.
Starting to invest can be done on a very small basis. Just keep doing it. Don’t raid your investments and keep a long term focus.
Financial independence is well within most people’s reach. The earlier one starts on this journey, the quicker they can arrive at their destination. Time and compounding can be your friend or your enemy. Make them your friends!
Be smart, be well-read, be aware and be successful
