Wisdom for Investing

Most of us can recall learning about Newton's three laws of motion from high school science class. What most people have not heard of is Newton's 4th law:

Financial success = financial resources x positive financial activity

If you don't recall learning about this, it is because I just made it up. But, the principle is important and applicable to us today. It is based off both Newton's first and second laws of motion:

We can adapt these to personal finances:

Your financial success largely depends on the amount of your financial resources (mass) multiplied by your positive financial activity (acceleration). Positive financial activity includes living below your means, saving on a regular basis, limiting the use of debt, and working to increase your income. If you apply those positive activities to your financial assets over a long time period, you will end up in a very positive financial situation.

And the idea to remember that underpins this concept? An object at rest stays at rest, and an object in motion stays in motion. MEANING, it can be very difficult to get going in a positive direction with your finances, but once you do, it gets easier as you build momentum.

Need help getting started? That's what we help people do all the time. Let's chat about it.

Thanks for reading,
Jack O'Connor, CFP®