ROE is your key to unlocking a better life!
Seriously, don’t get trapped with me in the kitchen at a party.
It happened again, I was chatting with some friends & they proudly shared about their trading returns by picking stocks & ‘investments’ in the latest cryptocurrency. Then a banker chimed in with their latest structured product (he struggled to explain how it works 😜).
I felt like everyone was selling their get-rich-quick-scheme (while still not being rich according to their own goalposts).
🐌 No one will ever sell me a get-rich-slow plan (because it wouldn’t sell very well), but it’s the only one that consistently works.
🎆 If someone uses a bunch of fancy words & jargon to try to sell you an investment or financial opportunity, don’t buy it.
🏃➡️ Run in the other direction, fast. 💨
⛔ If an investment or financial opportunity seems too good to be true, assume that it probably is.
✅ Index fund investing is largely set-and-forget.
✅ There’s not much to make a TV show or even a podcast about investing in the entire stock market lock stock & barrel.
✅ There is not much for you to do or constantly decide: Set up a regular savings plan into a few broad-based ETFs (index funds) …
➡️ Done. Less is more. Get back to living your life.
If you want to optimize your life, it’s essential to understand the concept of Return on Effort (ROE).
The higher your ROE, the more you get out of your efforts, making it an invaluable framework for decision-making.
ROE can also help you better utilize your time by prioritizing tasks & opportunities that yield the greatest results.
Focusing on ROE helps optimize your energy & resources for the greatest impact & satisfaction.
Investing in the stock market made me financially independent in 40-odd years without a rockstar income.
While there was certainly plenty of hard saving & a bit of luck (or even – cough – skill) in the mix, I still believe snowballing your way to financial freedom via the stock market is an aspiration open to everyone, not just the rich.
I’ve changed my mind on many investment-related topics over the years.
But you will never convince me that complex is better than simple.
𝗦𝗼 𝗺𝗮𝗻𝘆 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝗮𝘀𝘀𝘂𝗺𝗲 𝗰𝗼𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗲𝗱 𝗶𝗺𝗽𝗹𝗶𝗲𝘀 𝘀𝗼𝗽𝗵𝗶𝘀𝘁𝗶𝗰𝗮𝘁𝗲𝗱 𝘄𝗵𝗲𝗻 𝘀𝗶𝗺𝗽𝗹𝗶𝗰𝗶𝘁𝘆 𝗶𝘀 𝘁𝗵𝗲 𝘁𝗿𝘂𝗲 𝗳𝗼𝗿𝗺 𝗼𝗳 𝘀𝗼𝗽𝗵𝗶𝘀𝘁𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝘄𝗵𝗲𝗻 𝗶𝘁 𝗰𝗼𝗺𝗲𝘀 𝘁𝗼 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝘀𝘂𝗰𝗰𝗲𝘀𝘀.
⏩ How can you use what you just read to grow? 🤔