How The Money Game Changes With Time

How The Money Game Changes With Time

October 13, 2021 Financial Independence 25

Money Game

One of the toughest things about investment banking is that the job changes all the time.  The technical skills that make an amazing analyst or associate do not necessarily translate into the ability to quarterback a complex M&A or equity deal at the VP level.

At the same time, many VPs and directors who shine at process management and execution really struggle when it comes to origination, effectively capping out their career progression. Those who manage to navigate the transition end up rising all the way to the top.  Say hello to the corner office, hefty bonuses, and cushy board seats once you get tired of the grind.

This constant need to adapt and elevate your game draws many parallels with the process of building wealth.  Sure, there are some fundamental concepts that apply throughout.

Spend less than you make, invest the difference, let your investments compound for as long as possible.

That being said, you still need to calibrate your approach.  The strategies that work when you are twenty-five no longer apply when you are nearing retirement – and vice versa.

In today’s post, let’s explore how the money game changes as you go through the various stages of life.

Financial Adolescence:  Teens To Mid-20s

Apparently, Warren Buffett bought his first stock when he was 11.

Good for him – but in reality, not everyone is early to the party like that.  Which is just as fine, because your late teens and early 20s is when you lay the foundation for your financial future.

And if there’s one thing you need to know about foundations, it’s that you don’t want to skimp on them.

Good grades are important at this stage, not least because they determine the kind of university you’ll be able to get into, which subsequently goes a long way in defining your ability to choose a lucrative career path.

Good skills, however, are even more important.  I’m sure it’s great to graduate with a degree in the psychology of fashion, but good luck making the big bucks with that one.

Instead, you’ve got to follow the money.  Computer science, finance, medicine, engineering – you get the gist.

However, what’s most important at this stage is establishing good habits – because is your habits that will define your ability to monetize both your grades and your skills.

Health is the most important one, because it gives you energy, confidence, and optimism – the defining characteristics of most successful people.  No wonder there’s a direct correlation between health and wealth.

From a financial perspective, this is when you need to put your head down and get all the basics in place.

To continue reading, please go to the original article here:

https://bankeronfire.com/money-game