Here's What Delayed Gratification Looks Like
Everyone seems to expect a reward anytime the commit to an action. That's what Clear's sloped line above labeled "What you think should happen" indicates. I put in one unit of effort, I get an expected reward, or, I put in one unit of money and I should see a return. And this is not always the case. Sometimes you see little or even ZERO rewards, especially at the beginning of your investment journey. The difference between those that find long-term success and those that are ceaselessly chasing the next "new thing" is the ability to delay gratification and wait for those compounded results to kick in.
Compare it to a typical home mortgage
Here is an example of a typical home mortgage amortization chart. Focus on the upwardly curved light blue line. That is the cumulative principal you pay every month as a homeowner over the course of 30 years. To over simplify, your first payment could look something like $300 in Principal with $900 in Interest. But the next month it will be something like $302 in Principal with $898 in Interest. 15 years from now it will look something like $450 in Principal and $450 in Interest. Get the pattern here? The result is you end up building wealth at an increasing rate. The biggest gains monthly gains are made 15-20+ years down the road.
