There is a bus most of us missed in our younger years. Anything you invest in, no matter how small, compounds over time. Growing up, at most times we hanker for things that give us immediate gratification. The stuff we’re asked to focus on for the long term are things like education, career, and in some cases, some form of physical fitness. Saving and investing isn’t in our immediate priority set, or, let’s be honest, among things we think will matter in the near term.

For years, I tried to invest time and focus towards my career, then towards being an entrepreneur. But, somehow, the focus on what you do with your money seemed always to be “let’s do the bare minimum”. So I did what most people in my generation did, bought some insurance, a few mutual funds, and never really did anything else.

But we’re heading towards a different age, when younger generations will have learnt the merits of understanding personal finance at an age when we were taught algebra (I still don’t know how that’s useful). And I’m in many ways learning this from scratch, and putting down what I’ve learnt over the last few years. In many ways, these are fundamental principles which I don’t believe will change.

Park a double-digit percentage of any money you earn. Start at 10 per cent and increase over time. (It can start with pocket money to your eventual salary) and invest in things that you’ll keep for a decade. This is your foundation. Safe, secure and compounding, in as risk-free a form as possible.

Only put into risk an amount over which you won’t lose sleep. Nothing is worth losing a good night’s sleep. I’ve mainly been risk-averse my whole “investing life”, and I sleep like a baby. To understand your risk appetite, look to minimise it over time, rather than expand it. That’s how you would de-risk yourself in life.

When you take a risk, choose to do so in things you understand. Don’t risk on trends, “sure-things” and Twitter pundits. You need to decide if this makes sense. If you lose out on a big payday because you didn’t know enough about the fundamentals, dig deep to learn more so that you don’t miss the bus twice.

Invest time in learning how things work from a macro perspective. Having a base understanding of first principles and frameworks keeps your knowledge from becoming redundant. It also allows you to take a long-term perspective rather than a short-term bet. Betting is for gamblers. Invest in being knowledgeable, so you don’t have to be one.

Keep a small amount aside to spend without expectation of returns. Not everything needs to be an investment for monetary returns. Invest in experiences that bring you happiness and expand your worldview. You can’t put a price on experiences, and no amount of money in the bank compares.

These are principles I follow, and they’ve helped me be secure and happy with how my money compounds. More than that, it gives me peace of mind, and that’s the best investment you can make in life.

The author is content creator, podcaster, entrepreneur, and personal development pundit