Work Your Marshmallows

There is a psychological experiment where they test children’s capacity for delayed gratification. I name my Financial Freedom strategy after it. Multiplying Marshmallows. In the test, a child is offered one marshmallow now, or if they can sit and wait, two in a little while. Patience multiplies marshmallows. The same is true of the difference between hand-to-mouth living, and investing the gap between your hand and mouth. Consumption fires your money. Investing puts it to work. If you are able to invest 50% of a stable income for 15 years, and that money earns 5% real return (50-15-5), the Engine you build should be able to continue paying that stable income forever (if the Engine continues to earn 5%). Eat one, invest one. Live life. Build life.