Your savings and investments don't need a smart investment trick or picking the perfect stock; it is simply giving it more time to do its thing.
If you invest just Sh 5,000 a month from age 25 to 35 and then completely stop, you will end up with a much bigger retirement pool at age 60 than someone who starts late at 35 and saves that same Sh 5,000 every single month for 25 years.
Because your money got an extra 10 year head start to grow quietly in the background, you end up putting 60% less money out of your own pocket but finishing way ahead.
See illustration 👇
Be forgiving with your past self. What's done is done. No sense in beating yourself up about it.
Be strict with your present self. Win the moment in front of you right now.
Be flexible with your future self. There are many paths to success. You don't need life to be a certain way to live well.
Marcus Aurelius was right when he said the crowd will forget you no matter what you do. So the only real question is whether you spent your years chasing their approval or actually living for yourself.
I’m convinced discipline is just the highest form of self-respect. It’s choosing what you want most over what you want now. It’s keeping your word. It’s an act of service to your future self.
My honest advice to someone who wants to make a lot of money.
3 things nobody told you:
1. The only way to make a lot of money is to create a lot of value.
No one hands out money. No one is going to pay you just because they like you or think you're cool. That's not the way the world works.
Money earned is a direct byproduct of value created. Create value, receive value. If money is the goal, value has to be the focus.
This isn't just some vague idea: The only way to get rich is to create an enormous amount of value for others, and capture a small portion of that along the way.
It's not talking about the thing, it's not brainstorming about the thing, it's not asking about the thing, it's not thinking about the thing. The only way to create value is by doing the thing.
And if you don't know where to start, look around you. Customers, colleagues, bosses, shareholders, employees. Every single one of them has a problem. What problems can you solve for the people around you? Figure them out, solve them, scale that solution.
That's how you make money.
2. You have to demonstrate excellence in everything you do.
Your income scales proportional to the amount of excellence that you're able to demonstrate.
Strategic incompetence is a lie. You don't get to pick and choose when to show up, because the world will ignore your best and judge you for your worst. Everything matters. Every single thing.
Top performers show up with energy and enthusiasm for the little things just as much as they do for the big things.
If you're in the top-10% of performers, there's no ceiling for what you can do. But the self-awareness to identify where you currently stack up, and adapt to the honest feedback on it, is very rare.
If you're in the top-10%, you know it. If you're not, figure out why and fix it.
3. You don't need passion, you need energy.
I still have no idea what it means to follow your passion.
You don't have to be passionate about your professional pursuits, you just need to find energy in them. You just need to feel a pull towards them. You just need to feel that spark of curiosity in them.
Passion is usually a byproduct of energy.
When you have energy for something, you'll give it your deep attention to learn more. You’ll ask the right questions. You’ll figure it out. You’ll win.
***
And remember: Nobody is coming to save you. It’s just you. There’s a power in that.
Go do the thing.