The Biggest Asset You Have

We finance nerds spend a lot of time thinking about investments. Constantly watching the markets and checking our brokerage account. Overanalyzing this, over-optimizing that. All to squeeze out a few basis points. There's some value here of course but our energy is largely misplaced. Your portfolio should take a backseat to your biggest asset, you.

Human capital - the value of all your future earnings. Your economic power. Far more important than any portfolio decision. You're the cash cow, invest your energy accordingly. The more you invest in yourself, the greater your financial potential.

Keep learning. Education is the greatest predictor of wealth. College graduates makes a median $30k more a year than high school graduates. Huge for a single year, life-changing over a career. The chasm grows even wider for those who up-skill post-graduation. Learning makes you valuable.

Focus on your career. Invest in a career (or build a business) that is financially rewarding and something you can do for the long-term. This is your greatest cash flow, portfolio returns don't even come close.

Build relationships. Invest in strong relationships. This pays off everywhere.

Get healthy. Nothing matters without health. The rewards above all come from compound interest. You need to stay in the game in order to reap the benefits.

It's easy to get lost in the finance sauce. Remember what your biggest asset is and prioritize it.

Happy new year, friends.

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Herman Ye

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