OK, stupid question. Everyone wants to be a millionaire. But a better question is “Did you know it’s not that hard to become one?” Millennials have the unique opportunity to put their financial future on a course for success. For the most part, they are still young enough to benefit from a couple of decades of compound interest, and get their retirement established – and become millionaire’s by the time they retire.
Sorry, I’m not talking about get rich schemes or some weird trick that is going to make you a millionaire by sheer luck. I’m talking about a systematic and methodical approach to achieving millionaire status by the time you retire. Yes, that sounds boring, and it is, but stop and do something that almost no one ever does – seriously consider what you will do when you stop working. Will you even be able to stop working? If you don’t invest or start thinking about it now, then you’ll be in a world of hurt when you reach that pivotal point in your life. So please make that pivotal decision now, not thirty or forty years from now when it’s too late.
The Single Most Important Thing
The single, most critical aspect to becoming a millionaire before you retire is this – START EARLY (MEANING RIGHT NOW!). Let me share story with you that illustrates the power of time as it relates to money.
A man is offered $1 Million or a penny doubled every day for a month. It’s an easy choice, right? Wrong. Choosing the penny doubled every day nets you over $5 Million in a month’s time. This story illustrates the power of compound interest, and time and that the real gains happen at the end. For instance, in our penny example, halfway through the month, you still only have less than $165. Even until the 27th, you’re still far below the $1 Million mark. But the last three days make all the difference.
Let’s make a point by editing our example. Same offer, but the offer begins today, right now. You think about it for three days, then opt for the pennies. Guess what? You only get 27 days. Those three days you used to think about it are gone – never to return. So by waiting three days, you lost over $4.5 Million. That is what’s happening RIGHT NOW to your retirement fund if you aren’t investing it somewhere. You won’t get today back. Every day you don’t invest, you are limiting your retirement fund.
What Do I Do, Then?
Good question. There are many, many ways to invest – too many to enumerate here. However, there are many sites that have resources to help you to learn how to invest, how to manage your risk, and tax implications and more. Check out one specifically geared to Millennials. It’s called the Future Millionaire’s Blog. It is a new site but with relevant, timely articles that are easy to understand and fun to read. It’s perfect for you, even if you are investing small amounts of money. Remember the doubling-penny example? It can’t get any smaller than that, and look how that turned out. So don’t despair. Start now, start small. Just START. That’s the important thing.