I am often asked, what is the secret to financial independence? ( 3 keys to help)
This sentence from Charlie Munger sums it up in a few words.
"The big money is not in the buying or the selling, but in the waiting."
But here's the thing, this easy answer is very complicated to apply.
1. For the action-oriented "ambitious", it's hard.
Our modus operandi is more like.
- I set a goal.
- I set a plan of action.
- I succeed.
If a problem arises, I adjust my action plan and (often) get it done.
2. This is not the case with passive investing.
When the markets go up, you congratulate yourself on your strategy. In “ambitious” mode, my plan works.
When the markets fall (which is part of the game), my "ambitious" status pushes me to act.
- "What am I going to do to change?
3 keys to help.
3. Create context
Don't depend on your invested money. They should be able to live their lives for decades without you
4. Detachment
Everyone has an opinion. If you open the door to the outside world, you will always have a good reason to launch an action. Sell, readjust, get into cryptos...
5. Impermanence
One of Buddha's messages. Everything changes.The material, our thoughts, and ourselves.
Including your capital.
It fluctuates with the markets and there is nothing you can do about it.
So take a breath and let it go. It seems that we have an average potential of 672 million breaths over a lifetime. The more breaths you take, the more likely you are to reach "the big money" proposed by Charlie.
6. Like many good recipes, it's easy to understand and hard to apply.
If you're interested in financial independence, learn to breathe and let it go…
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