Markets are closed during the New Year, so I have time to indulge in wild thoughts. — About investing, money, and happiness

Investing seven losses, two break-even, and one profit is very reasonable. People who know how to use money to make more money will naturally have more and more, as money flows to places where they can grow comfortably. Clearly, less than 10% of people are especially good at making money.

I’ve asked many people one question: Do you like money? And explain how you like it. The answers are mostly yes, but the difference is some people like money because they like spending it, some because they like earning it, and some because they like money itself. It’s obvious that liking money and liking to spend money are two different things. Loving to spend money isn’t loving money; it’s a skill that quickly distances you from wealth. People who like to earn money, like money, and can earn money, are the ones with wealth. Only those who spend less than they earn will have money, and missing either side won’t work.

Extra money is for doing extra things. People don’t really need much. I’ve seen many wealthy people who choose smaller houses (often with top-tier property management) because they dislike trouble or having outsiders at home. Living in a mansion that you can’t handle won’t truly bring happiness.

The amount of money you can handle is what you have. Wealth beyond your capacity will flow away. Without ability, earning money by luck will surely lead to losing it all through skill.

How do ordinary people make money? If ordinary people can’t earn money, then if you do earn money and keep it, you’re not ordinary.

The worries of those without money usually boil down to not having money. Worries of those with money are about the worries themselves.

Having money is happy, but not as happy as you might imagine, and the sense of happiness decreases year by year.

Too much money can increase worries because managing and passing it on is exhausting. The more money you have, the higher your ability needs to be to manage it, handle relationships, and ensure value preservation and appreciation. Wanting to keep and grow wealth can make happiness difficult unless you just want to spend it.

Knowing how to spend money is also difficult. Excessive indulgence isn’t a good way to spend; it’s a way to ruin yourself. Not indulging makes spending hard. For example, charity—donating to a reputable organization or helping truly deserving people—while also gaining a sense of fulfillment, is actually very difficult.

Leaving money for children is also hard, and it’s not necessarily good for them or for yourself. Immigration and trusts are quite tiring. Wealthy first-generation families often face issues with the second generation taking control. Leaving money to children doesn’t guarantee they will love you more. Many children, especially those not from the same parents, are likely to cause disaster.

I hope everyone who sees this post will earn big money in the Year of the Horse and develop the ability to control their cash.