Many say, that they have no money, to invest. Jetty, to secure your life, need a lot of capital, thus identifying investment in securities and business.
Kurt Dagerman Kurt Dagerman
Is this really the case?? Today I will answer this question on one instructive, but at the same time, ambiguous example.
What, if i tell you, that money does not play the main role in investments, and time and perseverance? There was once such a man - Kurt Dagerman - dollar millionaire, shareholder, investor and ... bum. Yes, yes, you didn't think, a homeless man made a fortune, investing in stocks. How did this happen??
Dagerman started out very well, as sung in a famous song: “That, who has a good life plan, is unlikely to think about something else ". So Dagerman in his youth was considered a successful person in the future., however, fate decreed otherwise. Why did it happen like this, that he slipped to the very bottom, history is silent. However, in a sense, he still became successful.
Being homeless he, like all other homeless people, found a livelihood as best he could: collected and handed over all sorts of cans and bottles, but not for that, to buy a drink, but to buy stocks and gold. This made him different from other homeless people..
Free time, and he had plenty of it, he spent in libraries, fortunately in Sweden even the homeless are allowed into city libraries. There he read financial articles in newspapers, was interested in economic news and was always aware of, what is happening in the financial markets, even without the Internet and lightning-fast access to information. What for, after all, speed is not important in investments, and the duration of the investment.
He, during 30 years, having only a penny from the money earned on the delivery of bottles, he bought securities of Swedish companies. Time, compound interest, perseverance and passion for economics did their job: he ended up becoming a dollar millionaire, Earning 1,4 million. $.
All this suggests, that it is not necessary to have a large start-up capital, to have passive investment income. Most people want to double up as quickly as possible, triple your capital on the stock exchange, risking recklessly and losing your funds. Although with passive conservative investing, this can certainly be achieved, albeit for a long period of time.
Another important ingredient is modesty in spending.. The most frugal people are the rich. An example of Kurt Dagerman is, undoubtedly, extreme, because he did not spend a penny of the earned money on himself: he rummaged through the trash heaps and dressed in the same place, and invested all the money.
But you cannot achieve financial independence., spending money right and left. Therefore, if you want to invest, there must be a desire to save. Investing should be the main waste of "extra" money.
Someone will say: “I am already at an age, I do not have 30 years". Yes, the best option is to start investing at a young age. But being old can also achieve results., it is not necessary to go to the goal 1,4 million. $, which equals almost 108 million. rub. at the current rate. to me, for example, would be enough 5-10 million. rub., so i can say, that investments bring significant passive income. And you don't need to invest for this 30 years.
Returning to Kurt Dagerman, then he died in 60 years - obviously, living conditions affected. But I guess, that he was also dependent on his investments and capital, because. death came in the fall 2008 years - during the peak of the crisis, but this is my personal guess.
Is there any point in investing for the sake of investing, living very frugally? I think partly there, while capital accumulation is underway, ie. in the process of reinvestment. But up to a certain point, until there is enough capital, to generate passive income. How do you think?
So the moral is simple: choose long-term investment, be smart about spending money, take the time to improve your financial literacy and don't be addicted to money..
