A thought came to me over the weekend (which I would highly attribute to the books and conversations I had recently): Most financial advice that is doled out involved careful planning and execution over a long period of time. The period of time is usually over 20 years or more. I start to question if that is even viable, as the rate of change is accelerating at a higher rate than ever.
Think of this: IIRC it took us far shorter time to build the first aircraft than to invent the first light bulb. It took only 10 years for internet to be flooded with all these new social media and big data hype. (some of which I am still struggling to make sense of) In the last couple of years, it seems to be fashionable to sell products that is basically dreams.
Viability
What I am trying to pen down is: Would these financial solutions be viable some 20 years later. If not, why are we working on something that might be doomed to fail? To be clear this is not just accounting for inflation or personal lifestyle situation changes, but more of mega changes that is unthinkable presently and vast technological advancement and change of mindset. All these would ultimately affect how one plans.
Speed
I am starting to believe that anything beyond 15 years is in need of massive review. Unlike companies and institutions which plans for “long term” and “perpetual” you only really live once. You can only do certain activities when you are young (like come on, I can’t hoop that much if I am 50 year old , it is not about training. Same goes for alcohol. Same goes for your fast twitch muscles required for online gaming# ) In short I want to have the resources in the near term, when I can physically enjoy the good my money could buy me.
Planning for old age is fine, but people get so tied up in this that they practically missed out their 30s and 40s. I feel that there is a portion of the folks out there who got the formula but it isn't that easy. To put it simply, to enjoy life while you are still (relatively) young, you need to work super hard to get that high income / high business profit. 7-10% CAGR a year is great until you realize that without a significant base capital and high capital injection each year. The total amount at the end of your journey is a million at most which isn't a lot in most developed cities.
Seed Money
The ultimate solution is still getting that first pot of seed money – which for most people without a silver spoon in their mouths since birth would be a great income or a side gig. It is important to get that seed and even at modest growth it would lead to great compounding wealth. The difference is, the speed you get the seed.
I have no solutions yet; it is another yet random thought I had over the weekend. I am currently pursuing what could be a boost to my main income and hopefully that works out.
#I am getting my ass kicked by kiddos in CSGO cause’ my fingers can’t seem to react as fast as my eyes anymore.. no more split second scope flicks or headshots.
