How to Manage Wealth
Managing wealth is more than just accumulating money. Wealth is more complex and personal. Wealth determines the quality of our lives and cannot be measured solely by monetary value. Today, we will discuss how to properly manage wealth and how to start.
The Definition and Importance of Wealth Management
We often define wealth solely by monetary value. However, true wealth has more value than that. Wealth includes our time and quality of life. Many people strive to accumulate wealth but often miss the most important aspect in the process: time.
Saving Money vs. Managing Wealth
Saving money can be relatively easy. The best method is to automatically invest 10-20% of your monthly salary in low-cost index funds. This maximizes the effect of compound interest and can yield significant returns in the long run. However, this is merely a method of saving money, and managing wealth is another matter entirely.
The True Meaning of Wealth
Wealth is a concept that includes life satisfaction, not just monetary value. Seneca said, “People let others intrude on their lives, and even invite those who may someday take over their lives.” This warns us that we overlook the value of time and chase only monetary value.
Invest in Time
The most precious asset is time. How we invest our time determines our wealth. It is essential to change your morning routine, read ancient philosophy, and invest time in genuinely meaningful activities. Instead of wasting time on social media and news, focus on activities that enrich your life.
Changing Morning Routines
Many successful people emphasize the importance of morning routines. For example, Tim Cook of Apple wakes up at 4 AM every day to exercise and plan his day. This is not just a routine change but a way to actively manage one’s time and life. Reconsider what you do first thing in the morning.
Wisdom of the Stock Market
The stock market is always smarter than we are. Some intelligent individuals have issues with self-awareness and try to predict the market, but this is almost impossible. Instead, it is crucial to trust the market trends and invest long-term. Trusting the stock market and consistently investing is the smartest way to build wealth.
Conclusion: Manage Your Life
To properly manage wealth, you must manage your time like Scrooge. Remember that life is not a rehearsal but the real thing. Do not postpone what you can do today, and start right now.
References: Tony Isola, “Managing Money Is Easy, Managing Wealth Isn’t”