Warren Buffet became rich by being parsimonious and investing consistently. And remember the report : Bill Gates briefly overtaken by Amancio Ortega as world’s richest person (for a few hours). Ortega became ultra rich by not being flippantly wasteful. He was, and still is parsimonious. You will surely have to sacrifice plenty, early, to reach the Financial Promise Land.
+++ Like a said, the really wealthy people of this time are involved in wealth creation and did not become rich by penny pinching.
— Ok. Consider Warren Buffett’s simple definition of investment: Investing is forgoing consumption now in order to have the ability to consume more at a later date
+++ Agreed, but unfortunately, that later date could be sometime when you are already six feet below the ground and your money inherited by someone else; the pleasures of life would not be so exquisite again when you are too old. It won’t be worth your while to do the crazy things you did for fun in your youth again.
Supposing tomorrow never comes?
So went the divergent opinions.
My view of the matter is predicated on belief in the Chinese saying that .. Making money is like digging in the sand with a pin. It takes doggedness, consistency and TIME. Particularly time. You think pinching pennies can’t make you rich?. Think again. The secret is how long you have been at it and your ability to keep at it, while investing those savings carefully and aggressively. To put this in perspective, $1 doubled for 39 days comes to over $1 Million. It emphasizes the power of compounding, and abundantly demonstrates how little drops of water can actually make a mighty ocean, given enough TIME. You will note that, on the Forbes List, the only ones listed who are very young are in the IT business where money can be made “overnight”. The others (apart from those who inherited wealth) have been at the wealth accumulation effort for a while. Constancy and consistency!
Your take ?