Key lessons
- The four reasons to invest are as follows:
- Inflation reduces the value of your savings
- You can build large wealth with small amounts
- The most important element in the interest-on-interest effect is time and not how much money you invest
- We live in a capitalist society where wealth is taxed less heavily than labor.
- The best way to invest is to do it yourself. It saves a lot of costs and by properly diversifying through ETFs, you can also get great results without much effort and knowledge.
- Investing a fixed amount each month gives you good results. The longer you invest, the smaller the chance of loss and the greater the effect of compound interest.