💡TCD #1: The Force is Strong with Compound Interest
And why the "why" matters more than the "what"
Hello everyone,
Welcome to the 40+ initial subscribers who have made a commitment to level up your investing knowledge! This is the #1 issue of The Compounding Dad newsletter.
The Compounding Dad newsletter is focused on investing to help you compound your knowledge. Delivered every Saturday, this newsletter will have simple-to-understand and actionable content so you can cut through the noise and make smart investment decisions for yourself and your loved ones.
Each week, we will explore:
Our latest investing articles
A tip to compound your personal growth
Something fun
Coincidentally, today is May 4th and is also Star Wars Day. Being a fan of Star Wars, I have to say this: May the Fourth be with you!
The Compounding Dad Investing Articles
How Understanding Your "Why" Can Transform Your Finances
Most people jump into investing with questions like, "what stocks to buy?" or "how much to invest?"
But the key question you should ask first is: "Why am I investing?"
Is it for retirement? ️Your child's education? To travel the world?
Knowing your why shapes your entire investing strategy. A long-term goal allows you to weather market dips and make choices aligned with your values.
So, before you get your feet wet, take a step back and explore your "why". The "how" and "what" will naturally follow. Find out more from this article.
Here are other investing articles that might interest you:
1 Tip To Become 1% Better than Yesterday: Channel Your Inner Wisdom
How many times did you have trouble making a decision or felt stuck in life? To help you move forward with decision making, there’s a mental model that’s useful.
This tip is called “channel your inner wisdom” and here’s how it works.
Step 1: Choose your idols
Pick three people you admire and trust. They can be living, dead, real, or fictional.
Step 2: Think of the problem you are facing
Bring to mind something you are having trouble with and imagine yourself being that person you have chosen.
Think: “If I were [your chosen idol], what would I do [in this situation]?” Eg. “If I were James Clear, what would I do to stop procrastinating about exercising?”
You might get an answer: “Do the simplest thing that will get you moving. Place your yoga mat beside your bed so you will do some simple exercises immediately after waking up.”
Get creative with this. You can think beyond real people like Gandalf, Professor Dumbledore, or Yoda. How about having different folks for different areas of your life? Do it your way.
This tip works because it helps you to detach yourself from the problem you are facing and tap into your inner wisdom, which we all have access to. Try it and tell me how it goes.
Dad Joke of the Week
I tried to explain compound interest to my son. He just said, “I don’t want to get on that one-way roller coaster!”