The key to financial independence is your commitment to saving.
The market has captured our attention in the past quarter, as volatility spiked and concerns have risen about everything from interest rates to North Korea. While everyone is fixated on how the Dow is doing or how much the S&P 500 is up or down each day, we all need a reminder from time to time that the only way you accumulate money is by setting it aside. Saving is the real growth engine for investors, not rates of return.
It’s not that returns don’t matter. It’s just that we have no control over what the market does, and worrying about those short-term gyrations is a waste of your time and energy. Volatile markets often make people not want to invest, preferring to wait until there is more clarity.
Uncertainty is always going to be part of investing; long-term investors have done very well by ignoring what they can’t control and concentrating on saving as much money as possible.
Here’s a guarantee for you: if you save $2,000 a month, you will accumulate ten times more money than if you had saved $200 a month. If your plan is to reach $500,000 or $1,000,000 or $5,000,000, the sooner you save, the faster you will accomplish your goal.
Saving is the most difficult, simple thing in the world. There is nothing complex about saving money, but actually doing it is quite challenging. Let’s break it down into five steps:
Step 1. Update your attitude about saving. Thoughts become actions.
Do You Hate Saving Money?
Step 2. Create an ambitious goal.
How To Become a Millionaire in 10 Years
Step 3. Find ways to reduce your expenses.
23 Ways to Save Money
Step 4. Create a Financial Plan.
How Some Investors Saved 50% More
Step 5. Stick with the program.
How Exercise Can Make You A Better Investor
Want more evidence?
Study: Deferral Rates Trump Fund Performance
A lot of financial advisors only want clients who are already very wealthy. They can charge more fees that way. For me, I love helping investors who are at all points on their financial journey and my purpose in life is to lift others up to achieve the American Dream. That’s why we have no investment minimums at Good Life Wealth. I can help you the most if you are committed to saving and recognize that saving is the key to your financial future.
