When it comes to investments, most of the time any “get rich quick” idea is actually a road off a cliff.
Do this math – you invest $10,000 on the promise of big returns. The first year you have an 80% return! You now have $18,000. Woohoo! You double down and invest another $10,000. Then you lose 80%. How much do you have now?
($10,000 x 1.8 = $18,000 + $10,000 = $28,000 – 80% = $5,600)
You have turned $20,000 of hard-earned savings into $5,600. Was it worth being a hero for a moment? Did you go to parties and tell all your friends about the smart investments you made and tell them they should do it too?
Too many know what I am talking about too well.
Worse yet you may borrow the money to invest and lose – that really hurts.
Wealth is made slowly.
Yes, faster is better, but if that rule is unchecked it can lead us to do dumb things.
A friend of mine worked in finance and said “pigs get fatter, hogs get slaughtered. Don’t be a hog.”
Larry, I thought it was a really cool aspect of CN Live 23 to have Dock Street at the event.