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by pm2222 725 days ago
Compound interest. Save early.
1 comments

The trick with compound interest is to find something that beats inflation, because inflation compounds more quickly than your savings interest.
Another useful perspective is to recognize that a leaky vessel is better than no vessel at all. Savings is not just a poor performing investment vehicle. It's a security buffer which opens many choices down the road.

Imagine if early society decided there was no need to stock food for winter because there is some loss in the process...

Sure, but the discussion is "where do I put my savings", not "should I have savings or not".
Index funds?
Yeah, hopefully.