Investing. The thought might confuse you, intimidate you, sound too boring for you, or just sound like something your grandpa should be worrying about-not YOU! Change that mindset. Investing. Freedom from stress, independence, no regrets.
Freedom!
Who wants to be able to live free? To go on a spontaneous trip? No worries about the future? Most of us would agree-that sounds pretty great.
But what does investing have to do with that? If I spend all my money on investments...I won't have any left for fun stuff, right? That might be true for a short while, but look at the long run here.
Good-bye Stress
Imagine your life in five years. Go ahead...close your eyes for a minute and just dream. Now, 10 years. 50 years. Have a visual? Maybe you want to be a stay-at-home parent someday. Maybe you want to spend retirement traveling with your sweetheart. Showering your grand-kids with gifts. Maybe you want to start your own business or invent something awesome. Everyone has a different dream, a different journey through life.
I bet being broke, stressed, and not able to enjoy anything was not on your list. Neither was spending years just making ends meet and ending up with nothing to live off of for your last days. And don't just depend on the Government to take care of you...that is not one of life's guarantees.
Compounding Interest
Just think, if you start early, you could invest for 10 years and be set for the rest of your life. If you wait 10 years to start though, you will have to continue investing for the rest of your life to catch up.
Have you seen this visual that Dave Ramsey uses?
Ben only invests $16,000 while Arther invests $78,000. But who ends up with more?
How is this possible? Compounding Interest.
See, Ben started early. Each year, his money earned interest. The next year, he earned interest on both his money plus last year's interest. The third year, he earned interest on his money and the last two years' interest. This just continues so his money continues to grow.
Arther had compounding interest also, but since he started later, it didn't add up as fast.
Now, after Ben turned 26, he never worried about investing again and he knew that his future was secure. He will be able to live his dreams without depending on anyone else to take care of him. He is financially self-sustainable.
By starting early, he saved thousands of dollars. And didn't waste time worrying about whether he would be able to retire.
Independence.
Ben could start his own business, because he wasn't dependent on his employer's 401(k). He could take a break and spend some time traveling. All he needs to cover are the day-to-day expenses. Everything else? Taken care of. No regrets.
What do you think about investing now? It's not as hard as you may think. Find an investing expert to talk to. And just do it. You can.
