Getting rich by saving money isn't that simple: 5 realities you need to accept

Regarding wealth accumulation, there is a lot of talk online about side jobs, passive income, and financial freedom, but the truth is often more painful. There are no shortcuts, no magic formulas, only a bunch of hard lessons.

Lesson 1: This is a Long-Term Battle Wealth accumulation is a slow process, not fast food. You may have heard of people who made a fortune from investing in Apple stock 30 years ago or who turned their fortunes around by buying Nvidia at the bottom 10 years ago. But these people are either incredibly lucky or truly insightful—most are just lucky. They also had to endure years when those stocks were worth nothing. Want to get rich by trading stocks? That's basically a death wish. The most reliable way is simple: work hard to earn money and consistently save it.

Lesson 2: Frequent trading will eat away at your principal There is a fitting metaphor - your investment portfolio is like a bar of soap; the more you play with it, the less you have left. Frequent trading incurs fees and taxes, and these costs will gradually eat into your profits. Additionally, there is the overconfidence of people who think they can time the market perfectly, but the result is often the opposite.

Lesson 3: The Best Investment Opportunities Often Come at the Scariest Moments The 2009 real estate market crash, the pandemic plunge in 2020, and Bitcoin dropping from 60,000 to 15,000—these moments seem the most perilous, but they are actually the best times to invest. The problem is, most people are too scared and trembling at this moment. Maintaining a balanced investment portfolio and keeping some cash for emergencies allows you to truly buy the dip when opportunities arise.

Lesson 4: Emotions Can Weigh Down Your Wallet A new bag costs 500 yuan, without batting an eye, but when the electricity bill goes up by 5 yuan, we start to complain. This is human nature - we often spend money based on emotions rather than logic. This contradictory way of thinking can slowly erode your wealth.

Lesson 5: Most People Actually Don't Understand Financial Management The heartbreaking reality is that most people perform poorly financially. They haven't learned about these things and usually only think about studying them on weekends after work, and they aren't that interested. Interestingly, investing is one of the few areas where “knowing more doesn't necessarily mean making more money”—because no one can predict tomorrow's market. So what's the smartest move? Leave it to the real professionals who know what they're doing.