Building Wealth And Satisfaction In Life
6 Rules To Building Wealth And Satisfaction In Life
There are a host of rules in life that can and should be followed. These rules may seem obvious to you, on some level. However, taken together in the context of a plan of action, you will see how taking them seriously can help you build a life of financial success and personal satisfaction:
1. Think of America as the Land of Choices. Understand the good fortune you start with by the accident of your birth in this country. Think optimistically about the opportunities you have and of how opportunities amount to unexploited wealth. Pessimism can breed its own conclusions.
2. Take the Power of Compound Interest Seriously, and then save. Don’t expect to make it in this country by brawn, or even brains, alone. The power of “compound interest” is an essential ingredient in building a substantial fortune by saving early and consistently.
3. Get a Good Education. Be prepared to study hard and long, mainly because to really make it in the next century, your good fortune will depend on what you know and can contribute to the welfare of others.
4. Take Care of Yourself. Don’t forget to take care of your health. People who don’t take care of themselves, who abuse their bodies and minds, reduce their opportunities to build wealth and to have a satisfying life.
5. Take Prudent Risks. Taking risks is a part of life, which means risks cannot be avoided altogether. There are some risks, for example, where the market will head in the short term, and that we can’t do anything about. Then there are risks that we can minimize, for example, through the types and breadth of our investments. As a dominant investment strategy, we suggest that for most people the best investment strategy is to “buy the market” by investing in mutual funds that buy a broad range of stocks. Beating the market is tough for the best of investment strategists. Most importantly, don’t procrastinate long for fears that the market will fall. The time to start investing is now, and then invest regularly.
6. Strive for Balance. Recognize the importance of old-fashioned virtues like honesty, commitment, and integrity for what they are, as personal constraints that, paradoxically, expand our range of opportunities for building a fortune and satisfying life if we stick with them. Most importantly, strike a reasonable balance in the perspective you take toward the rules you adopt.