What Happens Next Will Make You Rethink Everything About Money
The Hidden Money Trap That Will Destroy Your Wealth
A few weeks ago, a coworker shared his work-related goal for this year: to get his finances in order. His friends had been encouraging him to do so, but it was something as simple as seeing the rule of compound interest in a graph that led him to make this decision. He told me that it has made him rethink many things. Now, every time he spends money, he thinks:
"$10 for a hamburger? No, that will be $2,000 in 50 years" (assuming a 10% CAGR, adjusted for 7% inflation).
"A trip to Africa for $5,000? No, that will be $1,000,000 in 50 years."
Seeing life this way makes you reflect on where you spend even a dollar.
This has made me think deeply about what money really is, how it works, and its true utility. A while ago, I wrote about money in Bali and how those who have a strong currency tend to pity those who don't, just as Bitcoin holders view those who hold dollars.
Today, I want to delve into this reflection on how money works and how you can make a lot of money simply by understanding the system.