As a financial adviser, I talk to a lot of people about their plans to create wealth and secure their financial future. They often have great plans and some people really take off running and are highly motivated by their goals. But sadly for others, many of those plans never get off the ground.
They fail to get started for 3 main reasons:
- Too many options and they’re still doing the research on which is best.
- Excuses like “I’ve got a lot of expenses this month. I’ll start next month”.
- Waiting for the “perfect time”.
These delays and procrastination are costing you money and robbing your future.
Let’s take two examples – Charlie and Alex. Starting January 2021 Charlie deposits $400 a week at 5% per annum for 10 years. Alex procrastinates for a while and doesn’t start investing until January 2026 but to make up for lost time, deposits $800 a week at the same rate of 5% per annum.
You think Alex would do OK with that strategy, don’t you. But no. Not quite.
By January 2031, Charlie would have a balance of $269,152 while Alex would have $235,752. That’s a difference of more than $33K due solely to compounding interest – the interest that’s paid on your interest. I know where I’d like that $33K to be and that’s in my account!
If you truly want to create wealth, build a legacy or just plan for your retirement, start investing today. Every dollar adds up!