The key to everything is patience. You get the chicken by hatching the egg, not by smashing it. – Arnold H. Glasow
I read that the average age of a millionaire is 62.
That means most will not reach the millionaire milestone until after age 50.
Therefore, you will need to treat your working years as golden nuggets of knowledge and labor in which each year of work gets deposited into your wealth accumulation bank.
If you start your 401(k) at the age of 25 and invest consistently, this would require that you save and invest for a minimum of 26 years to reach the millionaire ranking through this vehicle alone.
A $1-million-dollar nest egg can generate $50,000 of income on a 5% return.
Since, $50,000 is around the average earnings of many workers, a $1-million-dollar money bucket keeps raining enough dollars on you to walk away from work if you are earning this much or less.
As long as you only spend the interest, and not the principal.
NOW, WAIT IT UP
In order to get to this badge of honor, financially speaking, you will have to learn the art of waiting.
Waiting to buy a home.
Waiting to buy a new car.
Waiting to start a family.
You see what I mean.
Nothing comes without first understanding how to manage your time.
Patience is key.
Think of patience and investing like the letter and the stamp. One does not work without the other.
Consider the postage stamp: its usefulness consists in the ability to stick to one thing till it gets there. – Josh Billings
Life is complex. Situations may arise that will make it harder for you to reach your financial goals.
Remember this: It’s not the situation, but whether we react (negative) or respond (positive) to the situation that’s important. –Zig Ziglar
In my experience, optimism, truth, and positivity attract money to you.
Warren Buffest said, “The Stock Market is designed to transfer money from the Active to the Patient.”
We may all get the same 24 hours, but what we do with it is what matters the most.
Consider this quote. Everyday is a bank account, and time is our currency. No one is rich, no one is poor, we’ve got 24 hours each. – Christopher Rice
Therefore, manage your time wisely.
You do not have to move so fast. Slow down and focus. Distractions do not yield results only focusing does and that takes patience.
STOCKING UP ON STOCKS
The stock market has averaged returns of at least 9% over the last 90 years (1928-2016).
The shorter the time your money is invested so too are the amount of the returns.
You need a longer time horizon to invest to reap any rewards.
Here are some questions and answers when it comes to investing in the stock market.
Why should I buy stocks?
“If you don’t play you can’t win.”– Judith McNaught
How do I decide if I should invest in the stock market?
If you don’t feel comfortable owning a stock for 10 years, you shouldn’t own it for 10 minutes. – Warren Buffet
How do I decide what stocks to buy?
When buying shares, ask yourself, would you buy the whole company? – Rene Rivkin
How long should you hold a stock?
“Our favorite holding period is forever.” – Warren Buffett
Don’t you have to be really smart to invest in the stock market?
Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it. – Peter Lynch
Aren’t stocks risky?
“The biggest risk is not taking any risk… In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.”– Mark Zuckerberg
Ask yourself, what is my risk level?
If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks. – John Bogle
Should I avoid stocks?
Why not go out on a limb? Isn’t that where the fruit is? – Frank Scully
Where should I invest my money?
“Consistently buy an S&P 500 low-cost index fund.”- Warren Buffett
What should I do once I invest money?
Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. – Paul Samuelson
Check out books by quoted authors here on Amazon.
I say this when it ultimately comes down to investing or not investing; if you feel you can only afford to lose $5, then that is your risk level. When you pass that mark, whatever it is, it’s gambling.
And nothing is riskier than doing nothing except gambling.
Buffet once called a bad period the “Financial Pearl Harbor” during a terrible time in the market. Guess what? He still held on to the bulk of his portfolio and is one the richest investors in the world.
So understand that you have to pursue wealth.
It is not simply going to come to you.
You have to do something.
As in life, you have to give to get.
Winston Churchill said, “We make a living by what we get, but we make a life by what we give.”
Think like this: If your ship doesn’t come in, swim out to meet it! – Jonathan Winters
And remember this: “A ship in harbour is safe, but that is not what ships are built for.” – William G.T. Shedd
So know this, it’s not what you make, it’s what you keep.
When it comes to investing, just do your research, do your best, and have fun.