The Importance of Early Wealth Accumulation
A person who works hard to save 100,000 yuan and invests it day after day, year after year, will eventually grow it into 1.3 million yuan after a decade of effort at an annual return of 30%.
If at that moment he were to take that 1.3 million and buy a base-model Porsche just to spend it, whom would he be betraying?
He would be letting down the past decade, and even longer, of his life.
Because he is currently on a strong upward trajectory: another ten years of hard work would put 19 million in his hands, and ten years beyond that would bring him to 260 million.
Once he reaches 260 million, spending a small portion on a Porsche wouldn't matter at all.
But back when he was just getting started, it would. It comes down to proportions, and those proportions differ because the timing is different. Early wealth accumulation matters.
