Investing is hard. In fact, it is so hard that the combination of a decent income, financial literacy, and financial discipline is so rare that it effectively functions as a superpower. Today we’re going to talk about twelve reasons why investing is so difficult.
# 1 You Need to Have Something to Invest
Inexperienced investors focus on the investment, while those in the know focus on having something to invest. Having something to invest requires three things:
- A reasonable income
- The discipline to not spend your entire income
- Avoiding loss of earnings/capital through divorce, death, disability, liability, and speculative investments
You’re going to need a fair amount of each of those things to be successful, although you can often make up for a low amount of one of them with an extreme amount of another.
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