28th June 2013, 11:04 AM
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Member
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Join Date: Jan 1970
Posts: 4,432
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I have a different take on it.
I used to have my bank and split half winnings each week into reinvestment in the bank and half for wages.
I then realised I was ripping myself off from the compounding aspect.
It makes a massive difference over a year taking out wages, versus reinvesting the lot and letting it compound.
Money taken out cannot be compounded.
This aspect is magnified over a losing week or month. One is withdrawing from the capital.
Of course there is the negative psychological aspect, all that work for no reward, but since I've taken the blinkers off, the bottom line has improved immensely.
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