I love your core insight here, Nick, which I have not read elsewhere — the right strategy for building wealth and budgeting your life changes over time as you move up the "wealth ladder," as you call it. There is a lot of value in understanding how those strategies change as you make progress.
I had a conversation with Scott Galloway about his book The Algebra of Wealth in which he made two critical related points: (1) very few people really understand that exponential nature of compounding investment returns, and (2) young people generally do not appreciate that the TIME they have in front of them — 50+ years in which investments can compound — is itself an asset. Because of the incredible power of compounding returns, the benefit of *saving* early in one's life and putting those savings into the stock market (ideally Nasdaq 100 ETFs rather than S&P which have and will generate much higher returns without higher risk, in my humble opinion) is disproportionately high in our early decades.
Of course most of us have multiple decades in front of us, hopefully, and that is still plenty of time to enjoy extraordinary compounding.
I would add to this — the most important thing that money buys is the *freedom* to spend your time doing the things that you most care about. Hopefully endeavors that connect you with other people, add value to the world, and lead to a personal learning journey.
Great insights, Nick, thank you!
Here's my convo with Galloway for those interested:
I’ve been reading Nick’s work on ofdollarsanddata for years. His working style and use of data has always been intriguing to me. From Just keep buying and now the wealth ladder are books I recommend often.
I love your core insight here, Nick, which I have not read elsewhere — the right strategy for building wealth and budgeting your life changes over time as you move up the "wealth ladder," as you call it. There is a lot of value in understanding how those strategies change as you make progress.
I had a conversation with Scott Galloway about his book The Algebra of Wealth in which he made two critical related points: (1) very few people really understand that exponential nature of compounding investment returns, and (2) young people generally do not appreciate that the TIME they have in front of them — 50+ years in which investments can compound — is itself an asset. Because of the incredible power of compounding returns, the benefit of *saving* early in one's life and putting those savings into the stock market (ideally Nasdaq 100 ETFs rather than S&P which have and will generate much higher returns without higher risk, in my humble opinion) is disproportionately high in our early decades.
Of course most of us have multiple decades in front of us, hopefully, and that is still plenty of time to enjoy extraordinary compounding.
I would add to this — the most important thing that money buys is the *freedom* to spend your time doing the things that you most care about. Hopefully endeavors that connect you with other people, add value to the world, and lead to a personal learning journey.
Great insights, Nick, thank you!
Here's my convo with Galloway for those interested:
https://podcasts.apple.com/us/podcast/algebra-of-wealth-scott-galloways-formula-for/id1482067226?i=1000654295433
I’ve been reading Nick’s work on ofdollarsanddata for years. His working style and use of data has always been intriguing to me. From Just keep buying and now the wealth ladder are books I recommend often.