Five minutes with the drill at the dentist is an eternity but vacations are always short. The more aware you are of the passage of time, the slower things go. This also applies when investing and is a barrier that many cannot overcome.
Talk about long term investments It might make you think of a 500-car freight train that you’re going to have to watch pass by, an infinite wait. But that’s not the case, the long term comes in installments (it’s tomorrow and the tomorrow after that) and if you can, it slips away. Many only recognize it when they have graduated 10 or 20 years from school. Time is invested or lost, in finance there is no waiting period.
On the other hand, the long term is not an objective in itself either, no one is going to be given a medal for “choosing” to postpone a reward. It is rather the path to a goal that would be very difficult to achieve otherwise..
Let’s do gardening. Every time I think about sitting in the shade of a tree, I remember the paradises of my aunt’s country house. When she planted them, she did not sit and wait for the trees to erupt, she continued with her other projects because she understood that to reach the result she was looking for (enjoy the shade) there was a development process that had to be respected. My aunt acted for her long-term objective and continued to focus on the most immediate (not on the wait); that’s the recipe.
You also have long-term goals, the problem is that short-term ones tend to monopolize your attention. If I ask you what car you would buy, you can tell me make, model and color, you can see it in HD. But if I ask you What would you do if you didn’t have to worry about money?You will surely give me a great break. How you relate to your work (ideally that you don’t suffer from it) has a much greater impact on your quality of life than the car you drive. So why don’t you act on something so critical? Probably because that photo doesn’t come in HD and the reward is not short-term.
Achieving financial freedom to choose where to invest your professional time is something that does not happen overnight, it takes years.. That’s why The long term is the planning horizon par excellence for your most significant objectives, It’s a pairing out of necessity.. Not knowing this relationship can lead you to set unrealistic goals (doubling your capital in months for example) or to look for shortcuts that are nothing more than dead ends (Hope Funds, Generation Zoe, flowers of abundanceetc.).
The secret of the long term is that it is the natural habitat of the compound interest, the investor’s best friend according to Warren Buffet. How can it not be if he works for us? Compound interest is money making money; You generate it with your work, compound interest is generated with your investments. The only thing he asks in return is the discipline not to interrupt him.
Now, if discipline were something easy to maintain, gyms would be full all year round and diets would last months instead of weeks. Precisely for this reason there are investment tools designed to help you keep the constancy and capitalize on the constructive inertia of compound interest.
Today you can start working to achieve your most significant, long-term goals. I can help you.
I am always available through Instagram (@nr.asesorfinanciero), LinkedIn (Nicolás Rampinini) or on my website (nrampinini.com).
You may also like
by CEDOC
