blog.

Compounding.

I don’t write often on investing because I first and foremost view myself as a writer and marketer. But, I stay very active in both the stock market and other forms of investments. 

One important lesson that investing has taught me is how to gage cost. 

Prior to watching my money grow through investments, I viewed money and cost in the present tense –– $100 was $100. 

But, since finding modest success in the stock market, I now see $100 for what it truly is –– $1,083.47 when compounded annually at 10% over the course of 25 years. 

When you begin to gage cost not just in present tense but in future tense, your decisions when it comes to money changes drastically. 

For example, spending $4,000 a month on rent living in San Francisco becomes completely absurd when you realize if you were to invest the $48,000 you were spending each year on your rent for 25 years at a 10% return, it would eventually be worth $5,236,063.56. 

Now, I know these are extreme examples, but they are examples none the less. The $1,000 couch today ends up costing you much more than $1,000 tomorrow. 

Don’t be overly frugal, just be intelligent. Think like an investor and you will find you spend money on less ridiculous things –– or at least that has been my experience. 

Finally, if you are interested in getting started in the stock market, I use a service called Robinhood. On the other end of this link there is a free stock waiting for you. Yes, you read that right, free money. To be transparent, this is an affiliate link so I will also receive a free stock too.

As always, thanks for reading. 

By Cole Schafer. 


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Cole Schafer