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Never Spend Return On Your Investment If You Want to Build Wealth
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[QUOTE="Mika, post: 264431, member: 29399"] For a lot of people, investment is a way to generate passive income, and by building passive income they believe that will have additional money to spend. When people receive a return on investment such as stock dividends, they either use it to buy assets (buy properties, for example) or liabilities (a car for example). They even buy luxury with their return on investment (buy expensive items, go on a vacation, etc.). If you are financially in a better position, there is nothing wrong with spending your return on investment, you are only using your profits, your principle amount is still there. However, if you are not in a stable financial position, it does not make sense to spend your money. You should rather compound your returns to make newer investments so that you can build your portfolio. If you cannot enjoy money when you can, what would you do with the money in old age? [/QUOTE]
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Never Spend Return On Your Investment If You Want to Build Wealth
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