I keep sharing some real life instances of how people from humble background made it big in wealth through investing.
Curt Degerman who was called as ‘Tin-Can-Curt’ by people of his home town Skelleftea, in North Sweden, was a rag picker.
Curt used to travel every day in cycle across the town to pick up bottles and cans from the trash bins. He sold them for a small price to a nearby recycling plant.
He owned a house and used to eat leftover food provided by restaurants.
He did not complete school, never married and was alone.
He used to visit the public library in town and read all the financial newspapers.
That was his favourite pass time in an otherwise mundane life.
He was a rag picker from the age of 20 to 60, when he died of heart attack.
He had only one relative, his cousin visiting him occasionally to enquire his welfare.
On his death, it was found he has written a will. The will contained assets of his home, 8 million kronor in stocks and mutual funds, 124 gold bars worth 2.6 million kronor, 47000 kronor in bank account and 3000 kronor as cash at home. So other than his home, he had 12 million kronor worth of assets. This was equivalent to around $1.5 million.
He has left his home and the $1.5 million worth of assets to his cousin, the only soul who used to visit him.
He died as one of the richest person in the town.
There is no need for us to lead a life of rag picker or be extremely frugal.
What we can learn from Curt is that even with small income, if substantial portion of it is saved and invested in equities, it can compound to huge wealth over decades.
You’re all earning very well in your employment and business. If you can cut down on unnecessary lavish expenditures and save not less than 30% of your income, invest it in equities and give it at least two decades to compound, you can definitely become very rich.
What is the use of high income if we can never become financially independent in our life?
Also if a rag picker who never completed school can understand power of compounding and potential of equity, shouldn’t we who have access to much better resources gain similar insight?
Happy Investing !!