“There is only one success, to be able to spend your life in your own way.”
Christopher Morley
We think we want money to buy expensive things, but the best thing money can buy is freedom. Being able to do what you want, for as long as you want, with whoever you want is priceless. Yet few people ever talk about this, even if it’s the most valuable financial lesson you can learn.
I find it fascinating how certain financial experts cover (or in this case downright ignore) certain topics. They treat money as a rational topic, ignoring the most important aspect of personal finance: human psychology. Not buying expensive things and investing money over long periods can change our lives. But that’s not how the human mind operates. We want to fit in and that compels us to make questionable financial decisions, such as buying a new car, a shiny new watch, or going to exotic locations.
No one wants to get rich slowly but as the popular saying goes, “Good things come to those who wait”. There’s no way to get rich fast. Now it’s easier than ever to download an investing app, transfer a large sum of money, and pretend you know what you’re doing. I’ve lost count of the times I’ve heard someone say how much money they made overnight investing in questionable cryptocurrencies.
The first red flag is when they tell you they diligently study the market daily. Investing should be boring. Seeing numbers go up or down daily might make you think you’re doing something, but it’s pointless. This is the equivalent of going to Vegas and putting it all in red. Mathematically, a lot can go wrong. Yet we’re seduced by stories like these and some of us are convinced this is the path to financial freedom.
The alternative? Invest in the S&P 500 (an index fund that historically has had an average return of 10% per year) and do it for decades. While you do that, work on a business where you can earn money non-linearly. You can, for example, start a website or launch a YouTube channel. The goal is to do something where you feel like you’re playing rather than working. You then wait. With enough time, you’ll achieve the freedom you want because ultimately, that’s the best thing money can buy. The only problem with that advice is that there’s nothing sexy about doing something boring and waiting.
It’s time we ignore the so-called financial experts on social media. If you do it right, the path to financial freedom is boring. You just invest a set amount of money every month and let it sit there for as long as possible. You don’t have to study the market, you don’t have to watch YouTube videos, and you don’t even access an app regularly. Just wait and while you do it, you work hard on something. In the end, we all want to get rich faster, but the most meaningful things in life, you can’t rush.