The most valuable asset in investing!
The best way to become a millionaire! So everyone has read the different books about all the different ways to become a millionaire. What these books don't say is that they are full of it. You don't need to be a genius to get rich you just need 1 thing , which is the most valuable thing there is. Time ! Time doesn't just grow trees but will also grow capital and it is your most valuable asset. Lets make a demonstration of this. Imagine you have 2 alternatives: Alternative 1: Get one hundred thousand dollars now to invest. Alternative 2: Get one million dollars in 30 years time. If you look at both sums you naturally do the math one million is 10 times one hundred thousand and therefore you should take the one million but what you miss to take into account in this example is that 100 000$ in 30 years isn't still worth 100 000$ if you take into account investing the sum. The financial markets has generally given an 8 % annual return. Therefore if you calcu...