#1 Investing mistake
What’s the #1 investing mistake? Waiting until you have money to start investing. Don’t do this! You might feel that you don’t have any money, but that’s a Goddamn money mirage keeping you from your hard-earned millions. Let me ask you a question. Do you think you have enough money to pay $1,500* in taxes? ’Cause if you earn $70K a year, you are already doing that, every month, without thinking about it.
Uncle Sam is more than an old man with a long beard and a tall hat. He’s a smart dude. He knows he’d better take his money first, or he might never get his money. (I know that’s a slight exaggeration for a law-abiding citizen like yourself, but are you getting my point?) Once you get your check it’s going to feel like there isn’t enough for one more thing. That’s just the way it seems to work out.
So, take the Old Man’s lead and pay your future self before you get your paycheck. If he’s taking $1,500*, do you think if you took 1% for yourself, and invested it in your Roth 401(k), you’re going to feel the difference? Of course not! The only thing you’re going to feel is the time it takes to go to HR and set it up.
Now, don’t scoff at 1% because it’s going to make a world of difference. This is how 1% stacks up over a lifetime of investing. First, you get an “out of the gate” bonus because most companies offer a match. So, when you start investing your 1%, it instantly turns into 2%. If you do nothing else, at age 65, you will have $195,078!* * That’s almost a quarter of a million bucks, and this number is adjusted for inflation. (What that means is your account will say that you have $363,297 but it will feel like $195,078 in spending power.)
If you go wild and start investing 2%, which turns into 4% because of the company match, at age 65 you will have $390,155! (Again your account balance will say you have $726,596, but it will feel like $390,297 in spending power.)
Now, I want to unveil why this mistake is costing you so much money! You are missing out on the greatest money maker of all: Time! Time is what’s bringing home the bacon.
Let’s run the numbers and compare if you take action now and invest a dinky 2% per year, or wait until you have more money. The numbers make it clear. If you wait, you’re going to have to come up with a lot more money. If you start investing 2% now, at age 27, you would invest about $99K to receive $390K at age 65.
If you wait 10 years you will need to invest 5%, bringing your total investment cost to $155K, a $55K increase, to receive the same $390K.
If you wait 20 years you would have to invest 14%, bringing your total investment cost to $236K, a $137K increase, to receive the same $390K.
Now the $390K question. What would be easiest? Investing 2% now and letting time do the work, or waiting and paying 2.5 times as much for the same $390K? The answer is clear. Get your cute butt down to HR and enroll now. You don’t have to find any money; it’s there waiting for you.
Really want to give your finances wings? Sign up for the DIY Millionaire Boot Camp™. It’s only $0.82 a day, and it can make you $500 + an hour.
Still not sold? Try a sample for free. You have nothing to lose, and everything to gain. Get started now! Your future self will thank you.
With love and money magic,
Trice
*all numbers have been rounded to the nearest $1,000 to make it easier to digest.
**The assumptions for the calculations above are based on these numbers: $70K starting income. Salary increases by 3% yearly. Starting age 27. Retirement age 65. 7% return. Inflation 3%.
больше
May 13, 2016 at 11:12 pmGreat post. I used to be checking constantly this weblog and I am inspired!
Extremely useful information particularly the closing section 🙂 I handle such info a lot.
I have been looking for this particular info for a long time.
Thank you and good luck.
reumofan plus ingredients in english
May 14, 2016 at 2:20 amHeya I’m for the first time here. I found this blog, and I find It truly useful. It
helped me out a lot. I am hoping to provide one thing again and aid others like you helped me.
godlike productions
May 14, 2016 at 4:03 pmIt’s amazing to visit this website. I am also eager of getting knowledge.
bet365 mobile
May 18, 2016 at 12:10 pmThis website was… how do I say it? Relevant!! Finally I’ve found
something that helped me. Cheers!
k-12 public schools security services
May 19, 2016 at 4:54 amI’m gone to inform my little brother, that he should
also pay a quick visit this webpage on regular basis to take updated from latest
information.
DonaldSKufel
July 14, 2016 at 4:51 pmKeep on working, great job!
LindsayLCurz
July 23, 2016 at 2:23 pmAwesome post.
DyanEHebrard
August 13, 2016 at 8:17 pmI wanted to be grateful for this fantastic read!! I absolutely enjoyed every bit of it.
I have got you book-marked to think about new stuff
you post
BurlBNeisler
August 29, 2016 at 10:55 pmIt’s a pity you don’t have got a donate button!
I’d definitely donate to this particular excellent
blog! I suppose for now i’ll settle for book-marking and adding your Feed to my Google account.
I enjoy brand new updates and may share this blog with my Facebook group.
Chat soon!
SanoraZPatin
September 2, 2016 at 7:44 amKeep this going please, great job!
colorado real estate commission rates
September 3, 2016 at 11:27 pmIt’s nearly impossible to find educated people about this subject, but you sound like
you know what you’re talking about! Thanks
VenitaPBjerk
September 7, 2016 at 9:37 amI’ve been exploring for a bit for almost any high-quality articles or blog posts for this type of house .
Exploring in Yahoo I finally discovered this website.
Studying this information So i am just glad to express that I’ve a remarkably excellent uncanny feeling I determined
exactly the things i needed. I most surely will make certain to tend not to
forget to remember this site and gives it a look on a constant basis.
ErikCLagorio
September 12, 2016 at 5:00 pmA motivating discussion is unquestionably worth comment.
I do believe that you need to publish more on this subject, it may
possibly not be described as a taboo matter but usually folks don’t talk about such topics.
To the next! All of the best!!
DeanMBucchin
September 23, 2016 at 10:02 pmKeep on writing, great job!
TerenceBFarb
September 24, 2016 at 9:41 amVery good post. I’m experiencing some of
these issues at the same time..
beauty products
September 27, 2016 at 6:25 pmGreetings! Very helpful advice within this post! It’s the
little changes that make the greatest changes. Many thanks for sharing!
DuncanTLisko
September 29, 2016 at 6:43 pmThanks for finally talking about >Ivy | #1 Investing mistake <Liked it!
HarlanEWiers
October 7, 2016 at 10:10 pmWhat’s up i am kavin, its my first time to commenting anywhere, when i read
this paragraph i thought i could also create comment due to this brilliant article.