How many of you know what to do and yet don't do what you know? Contrary to what many people believe, knowledge is only potential power; it only becomes so if you know how to use it.
With all the information available out there, different opinions about solutions, and a variety of products that are supposed to help you get better with finances, why do 90% of people still fail with their finances?
How many of you know what to do and yet don't do what you know? Contrary to what many people believe, knowledge is only potential power; it only becomes so if you know how to use it.
With all the information available out there, different opinions about solutions, and a variety of products that are supposed to help you get better with finances, why do you think 90% of people still fail with their finances?
Each roadmap will look different depending on many factors, like how much you have loaded your car (whether you have prepared well for your journey), how fast or slow you drive, and how much time you spend at each destination. Some may have the goal of getting there fast, while others may prefer to go slow while enjoying the ride along the way.
You can manage your trip in many different ways, but the most important piece here is that you are always moving forward.
Each roadmap will look different depending on many factors, like how much you have loaded your car (whether you have prepared well for your journey), how fast or slow you drive, and how much time you spend at each destination. Some may have the goal of getting there fast, while others may prefer to go slow while enjoying the ride along the way.
You can manage your trip in many different ways but the most important piece here is that you are always moving forward.
Do you know how long it is going to take to double your money at a particular rate of return? Take the number 72 and divide it by the interest rate you hope to earn. This should give you approx. number of years it will take to double your money.
If you invested $5,000 at:
🟫 4%, it will take 18 years to double your money
🟫 6%, it will take 12 years to double your money
🟫 8%, it will take 9 years to double your money
🟫 10%, it will take 7.2 years to double your money
Key point: It is important to pay close attention to where your money is growing because it will dictate how fast you can double it.
Do you know how long it is going to take to double your money at a particular rate of return? Take the number 72 and divide it by the interest rate you hope to earn. This should give you approx. number of years it will take to double your money.
If you invested $5,000:
🟫 At 4% interest, it will take 18 years for you to double your money
🟫 At 6% interest, it will take 12 years for you to double your money
🟫 At 8% interest, it will take 9 years for you to double your money
🟫 At 10% interest, it will take 7.2 years for you to double your money
Key point: It is important to pay close attention to where your money is growing because it will dictate how fast you can double it.
Do you know that you lose money by waiting on the sidelines and not investing?
Let's take a look at this scenario:
Camille and Josie are both 25.
Camille starts saving $200 per month now. Josie waits until she’s 30 to start saving the same amount.
Assuming a 5% rate of return, Camille's savings will have grown to more than $306,000 by the time she’s 65.
Josie’s will have grown to just $228,000.
The cost of waiting for just five years is $78,000. That's a lot of money!
Do you know that you lose money by waiting on the sidelines and not investing?
Let's take a look at this scenario:
Camille and Josie are both 25.
Camille starts saving $200 per month now. Josie waits until she’s 30 to start saving the same amount.
Assuming a 5% rate of return, Camille’s savings will have grown to more than $306,000 by the time she’s 65.
Josie’s will have grown to just $228,000.
The cost of waiting for just five years is $78,000. That's a lot of money!
In general, the phrase "pay yourself first" indicates saving money before paying bills and making other purchases. This concept does not only apply to you if you have a surplus in income. Putting money away now and paying yourself first, even with a very modest income, will go a long way!
If you just saved $100 a month for 40 years:
🟫 At 3% interest, you would have about $93,000
🟫 At 6% interest, you would have about $153,240
🟫 At 9% interest, you would have about $472,000
That is why it is so important to pay yourself first and start doing it today!
In general, the phrase "pay yourself first" indicates saving money before paying bills and making other purchases. This concept does not only apply to you if you have a surplus in income. Putting money away now and paying yourself first, even with a very modest income, will go a long way!
If you just saved $100 a month for 40 years, this is what you would have:
🟫 At 3% interest, you would have about $93,000
🟫 At 6% interest, you would have about $153,240
🟫 At 9% interest, you would have about $472,000
That is why it is so important to pay yourself first and start doing it today!
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