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While these examples emphasize the advantages of early investment, they inadvertently propagate an “all or nothing” fallacy. This notion can lead many to believe that if they didn’t start young, there’s no point in investing at all. Unfortunately, this mindset can result in inaction, leaving money stagnant in bank accounts where it loses value due to inflation.
Understanding the Goals of Investing
To develop a clearer understanding of investing's importance, we should set measurable criteria for success. As with fitness goals, investing needs to align with personal financial objectives. Here are the two primary aims of investing: