Imagine it’s 2015 and you get a $250,000 windfall. Two choices: Buy a new Ferrari 488 GTB. Value today: ~$175k to $220k. Put that $250k into Ferrari’s IPO (RACE at $52/share). Value today: ~$2,000,000+. This applies to everyday life, windfall or not. Instead of upgrading your iPhone every year, run it into the ground and invest the difference. Instead of financing a $100k truck you will never off-road or haul with, drive a sensible Japanese econobox. Money invested compounds. Spending does too, just in the opposite direction.(Lark Davis)