Your Financial Journey – Sprint or Marathon?
Think bout it..
If you have never run 5km non-stop before and I challenge you to a marathon today, would that seem rather impossible?
So, how do long-distance runners start?
First, they start by running just 1km – 3km for their first day of training. In fact, some of them don’t run. They jog. Then, they will start off running maybe 3km, then 6km, then 10km, then 20km.. And before they know it, several months have passed and they are competing against other runner. And again.. Before they know it, several years have passed and they have gone competing in the Olympics!
What a successful runner do not do is to go and sprint 30km on the first day!
You see.. Running a race is rather similar to investing for returns or learning to save. If you have never jog a km or two before, you are going to fall apart and begin to hate running. Saving is a skill or habit that you need to build up gradually. Let’s say you are earning $3,000 a month and you have never save a single cent before, you don’t go from saving nothing to a saving of $2,500 a month. That’s ridiculous! You have to cultivate the habit of saving slowly!
So, lets me ask you 1 question. Do you think you can save $10 a day? or.. Are you willing to save $10 a day?
Well, over the next 30 years, you will be saving $3,650 a year and that will come up to a total of $109,500. Well, lets say you are currently at the age of 25. Over the next 30 years, you have diligently saved $10 a day and invested it in the right investment tools that have given you returns of 14% a year. It’s not guaranteed, but I can show you how to put the odds in your favor in order to make it happen. Putting in $3,650 a year, can you guess how much you would have when you retire at 55?
That’s a total of $1,302,271!
By then, if you were to put your $1.3 million into a risk-free fixed deposit account earning interest of 4%, it would bring you an additional interested of $52,090 a year. This means $4,340 of extra income a month for the rest of you life! This miracle is happening with only $10 a day and right now, we are not considering the fact that you will have other form of savings, investments, businesses, passive income, etc that you will be having at that point of time!
Lets make this more interesting. Imagine where you will be if you were saving $50 a day instead?
Your future lifestyle is not determined by how much you earn right now.. Rather, it is determined by how much you can save and wisely invest. It doesn’t matter if you are a student getting pocket money from your parents, low or middle class income earners, you will be a millionaire one day if you have enough financial intelligence with discipline!