WHY YOUR TEMPERAMENT DEFINES YOUR WEALTH

COMPOUND interest is the eighth wonder of the world.

He who understands it, earns it.

He who does not pays it, legendary scientist Albert Einstein said, and is often quoted in several articles on personal finance.

Very little importance is given to why and when Albert Einstein made that statement on compound interest. Honestly, nobody should care. His name is enough to add credibility to the context. However, this column is not about the concept of compound interest. It is about your temperament. At the end of it all, your ability to ride through multiple market cycles makes you a winner in creating wealth.

You need to make some effort to build that ability. It would help if you were born with a patient mind. However, the chances of you falling for the 'high risk, high returns' model would also be dim. Most of us in India prefer not to take risks.

Considering the history of our nation, we are a patient lot. We allow a benefit of the doubt to our governments. Most of us do not take any law into our own hands and indulge in street demonstrations like those in neighbouring countries.