The topic of saving, investing and financial discipline is becoming increasingly relevant, which is essentially correct. It works, but only because most people don’t do it, don’t understand it or simply ignore it. If everyone started following financial advice at the same time, the system would collapse like a house of cards.
This is a truly paradoxical mechanism: the advice and strategies are logical and correct in essence, but their effectiveness exists only because not everyone implements them. This paradox is the main financial mechanism on which the entire flow of money is based.
Your profits do not fall from the sky. Every percentage point you earn comes from someone else’s losses. Someone always has to panic, take out a loan, or live from paycheck to paycheck so that you can earn money. You save, someone else spends. You wait, someone else sells in a panic. You understand market processes, someone else ignores reality. That’s how the system works.
Using the system for profit is not intended for everyone. If everyone started saving and investing at the same time, consumption would decline, the market would stagnate and companies would not make a profit — including you, who wants to earn money in this process. Profits are only for those who understand how the system works and are able to take advantage of others lack of understanding. Other people’s mistakes work in your favor.
There is no wisdom involved – only strategy, timing and the ability to use the system to your advantage. Someone always pays the price. Always. You can be on the side that profits or the side that pays.