Pete Wargent blogspot


'Must-read, must-follow, one of the best analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Markets & Economics Editor, Sydney Morning Herald.

'I've been investing 40 years & still learn new concepts from Pete; one of the best commentators...and not just a theorist!' - Michael Yardney, Amazon #1 bestseller.

Tuesday, 11 June 2019

Spend less than you earn...

...and, well, you know the rest.

For something a bit different, via Kasey Edwards in the Fairfax media today, see here (or click on the screen grab image below).

Saying 'spend less than you earn' is so simple it's bound to sound trite.

Yet how many people actually do it properly?

The real cost of discretionary spend is in the opportunity cost.

In other words, what you might have done with the money instead.

And the thing to keep hammering home to yourself is the 'hockey stick' effect of compound growth.

The growth in your portfolio might seem frustratingly small to start with, but the result snowball into something incomprehensibly big later.

And the really astonishing results come at the end of the hockey stick.