February 17, 2011
Time management and investing randomness
Assuming that I live to be 75 years old I have a little over 20k days left. A third of this time I will spend sleeping, that will leave me with ~13 500*24=324 000hrs to do something. I will probably spend around 2hrs on average per day eating, that will leave me with less than 300 000 hours. That doesn't seem that much, does it? If I continue to have a schedule like I do right now I will on average spend around 4hrs per day doing nothing productive(I got ~8hrs of school on weekdays, I did not count this as being nonproductive although it is a few hours every day). Spending those 4 hrs productively will gain me a total of ~50k hrs of time that I can out into a good use. This is over 2000 24-hour days or almost 6 years spent doing nothing useful. I do not want to spend 6 years of my life doing nothing.
Most of us are aware that the earlier we start investing the more value we will accumulate during our lifetime. A few years can make a HUGE difference, especially if you start investing as young as I am. I'm not necessarily talking about investing into stocks or whatever. I'm talking more about knowledge. *I got carried away once I started thinking of investing and ended up writing a program that would calculate how much my purchasing power would increase if I would invest X amount of money every year. I could've gotten the results in less than 5 minutes if I had bothered to google it though... Whatevs, I like programming. Now I want to make it so that I'll invest the same amount of purchasing power every year so that I could take inflation into account. It's easy to do but I'm tired right now.*
Since I already got talking about investing I guess that I could share some numbers that I got from this program. Let's say I start investing the same amount of money every year. I think the average return on stocks is around 7% after we take inflation into account. So every year we gain 7% purchasing power.
- If we invest for 30 years, our purchasing power should be around 3.4 times the total amount of money that we put in.
- If we do the same for 40 years it'll be 5.3 times as much.
- In 50 years it'll be 8.7 times as much.
- After 55 years of investing our purchasing power will have grown 11.2 times the amount of money we put in.
As you can see, a few years will mean A LOT, especially once we get to 50+ years. If you could put aside $100 every month for 55 years it would grow to $739 492.31. And that is without taking inflation into account. This number will probably be multiple times bigger after inflation has been taken into account. Another thing to keep in mind is that I'm a very tired 18 year-old with nothing better to do on a Thursday night, I could've easily done something wrong here.
I don't know how I got from time management to here but anyway... I seriously have to take a look at how I spend my free time, I will write more in my next post once I have actually made some improvements. I will probably donate $X to charity Y every week that I don't study 14 hours(for school, not going to make something like that for poker atm). This seems to be the only way to get myself motivated again.
Haven't played much poker lately but I hope my 70BI downswing has come to an end. I'm feeling really tired because I haven't slept well lately. I get close to 8hrs of sleep but it certainly doesn't feel that way. I don't drink any caffeine in the evening either, don't know what's the problem. This is also the reason why I haven't played. I need to find a way to relax, I should go to the gym... Or maybe swimming...
Seeeeyaaa!!!1!!

2 Comments:
Int20h posted on February 18, 2011 at 10:25 AM
Great post. Regarding the sleep issues, you can try some solutions that have worked great for me:
- Exercise (makes you tired and relaxed so your sleep is deeper and makes you wake up refreshed the next day and full with energy)
- Sex (same as before)
- Warm milk/Lactose pills before bed (reduces anxiety and gives um a warm feeling also great for relaxing and sleeping calmer)
Kind regards,
Int20h
tychoon posted on February 19, 2011 at 12:03 PM
Thank you for the advice =)
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