The first lesson has to do with the “foolish wishes” people often make with their money:
“I wish I had a bigger house.”
“I wish I could go on a tropical vacation.”
“I wish I could spend as much as I want now and not have to save.”
Thinking this way actually drives some investors to make poor choices in the interest of sealing the deal on these wishes, but, like the woodsman, they can’t keep them for long. They might buy the house, take the vacation, and spend all they want on the things they want now. But they risk trading their future for the present, and they might be wasting a real opportunity for a substantial long-term result from their money.
To be clear, the problem with this approach for investors isn’t that the wishes ...