The three cannot have both, because there is no free lunch in the world - to obtain high returns, you must take high risks, and risk is uncertainty. For example, stocks sometimes have high returns, and sometimes have great losses.
Therefore, high returns are generally unsustainable.
Which is the most important? Long term compound interest is the most important, and the two main factors that constitute long-term compound interest are "sustainability" and "low risk". Therefore, the important feature of investment is that it is not a game of competition, but a long run that can last at least 20 to 30 years.
So keep a stable, low-risk return and stick to it. Only when you are friends with time can you really earn money.
There are so many smart people in the world. Why do they make little money by investing? Buffett said the key in one sentence: most people can't stand getting rich slowly.
The higher the principal is, the more obvious the role of long-term compound interest is - increasing income and reducing expenditure is also crucial in financial management.
If we take a closer look, we will find that in the 42nd year, your wealth will be 5.48 million, but it will double to more than 11 million in just eight years.
This is the acceleration principle embodied in compound interest. Because as time goes on, your base will become larger, and wealth growth will be easier. So it takes 42 years to increase from 100000 to more than 5 million, but it only takes 8 years to increase another 5 million.
This acceleration principle reflects that when the initial wealth is small, the effect of compound interest will not be particularly obvious for a long time, but once a certain threshold is crossed, the speed of absolute wealth accumulation will become very obvious.
On the contrary, if you have more investable capital at the beginning, the effect of compound interest will be more obvious.
So when your initial capital is relatively small, it is also important to accumulate more initial capital.
Throttling
I was lucky. When I was still poor after graduation, there was no such platform as a book, and I had never been exposed to luxury goods. After graduation, I soon saved the first 100000 yuan with my husband (I graduated with a master's degree in 2010, when the salary of the graduates was much lower than now)..
We were surprised to find that if we saved another 300000 yuan, we might be able to pay the down payment to buy a house.
After tasting the benefits of saving money, I have formed the habit of keeping accounts. Sometimes I feel that I didn't buy anything at all, and even spend half of my salary without paying the rent for a month. Therefore, keeping accounts actually allows you to know better and save unnecessary expenses.
Later, when she became a millionaire, she began to touch luxury goods. Girls always had no resistance to good-looking bags and clothes, and dreamed of becoming VICs of several blue blood brands. At the most exaggerated time, she thought that clothes in the early 10000's were cheap.
