Would you rather have $1,000,000 today or $0.01 doubled everyday for 30 days?
If you started today you would have $1,000,000 if you chose A.
If you chose the penny route you would have $0.01.
Sidetracking and then coming back. Have you ever tried to lose weight or know someone who has?
Did it happen overnight? Or was it small incremental changes and progress made daily? Yes you're right. It was small changes made daily. Then one day all of a sudden your at a party and someone who hasn't seen you in X amount of months says WOW you look great. What did you do?
It wasn't an overnight success. They didn't see the hours spent prepping food, working out and more.
Let's circle back now to our finance because I believe weight loss and finance are identical.
So which would you rather have $1,000,000 today or $0.01 doubled every day for 30 days?
Day 1: $.01
Day 2: $.02
Day 3: $.04
Day 4: $.08
Day 5: $.16
Day 6: $.32
Day 7: $.64
Day 8: $1.28
Day 9: $2.56
Day 10: $5.12
Day 11: $10.24
Day 12: $20.48
Day 13: $40.96
Day 14: $81.92
Day 15: $163.84
Day 16: $327.68
Day 17: $655.36
Day 18: $1,310.72
Day 19: $2,621.44
Day 20: $5,242.88
Day 21: $10,485.76
Day 22: $20,971.52
Day 23: $41,943.04
Day 24: $83,886.08
Day 25: $167,772.16
Day 26: $335,544.32
Day 27: $671,088.64
Day 28: $1,342,177.28
Day 29: $2,684,354.56
Day 30: $5,368,709.12
To go back to our weight loss story Day 28 is when you meet the person who hasn't seen you in years....
Successful investing takes time.
It is a marathon not a sprint. Like weight loss it is incremental changes made daily. In terms of investing it is incremental amounts put towards your future self.
One of the major regrets of retirees is that they didn't start soon enough.
I know life gets in the way. I get it. You've got kids, you've got a business to run I get it. I've got 2 kids of my own too and I am running a financial services practise.
But it doesn't mean you can't put some money away for your future self.
It doesn't mean you can't protect yourself and the business.
The answer is you've just got to do it. The amount at this point is not as important. Put something away. Every month. Your 65 year old self will thank you.
As we close out let's do an exercise. I want you to imagine you have just retired. It's day one of retirement or in the case of business owners you've decided to slow down and step away from the business.
- What are you doing?
- are you travelling on the Rhine River
- looking after grandkids?
- golfing with friends
- What does the week look like?
- Who are you spending your time with?
- members of the country club
- What does the next 5 years look like?
- What is the dream goal of yours and if I told you, you could do it would you do it?
Spend a few minutes tonight and reflect on those answers with your spouse. Get on the same page and think about what you will be doing.
In closing, if any of this resonated with you and you thought it was valuable please share it with your friends and family and co-workers.
Lastly, if it resonated and you'd like to know more about how to make those dreams happen; send me a reply and we'll schedule a 15 minute chat to see if we can help you get there.
Yours in Finance