How joyful would it be to spend what is earned from the investment? Going for holidays, upgrading cars, shopping spree, etc.

After all, once in a while being spoilt is necessary. There is nothing wrong with spending the earnings.

On the other side, it does make a huge difference if an Investor choose not to spend what is earned. Instead, use the earnings to earn more by re-investing.

For example, three Investors with same capital (say IDR 100,000,000) earning same average return each year (say 15%).

Investor A: spending 80% of the earnings

Investor B: spending 50% of the earnings

Investor C: re-investing 100% of the earnings