It’s Never too Late to Save and Invest

It might appear tough to save but that thinking will keep you in your present comfort zone forever.  And will keep you poor and in debt.  It is a matter of prioritising saving over some of your current spending.  Notice I said ‘some‘ of your spending, not all of it.  Something has to give to make a change, and there is never a good time.  Mostly you just have to bite the bullet.  Your sacrifice doesn’t have to be big.  It can be small but it has to happen and you have to stick at it.  It’s the small changes over a long time period that produce the best results because they are the easiest to stick at.

Once you can spend less that you earn, or earn more than you spend, then you can save.   Once you have gathered some savings, you can invest.  It doesn’t have to be a lot to start with.  The main obstacle to investing is likely to be your lack of knowledge in this area.  So you will probably need some advice on how to do this sensibly.  But an amazing thing happens when you invest and grow your savings.  The law of compounding returns (e.g. interest on interest) kicks in and helps do some of the work for you.  You start making money while you sleep.  You don’t notice much at first but as the balance grows, the effect becomes more noticeable.

The seven (7) basic elements you need for the Law of Compounding Returns to work well for you, are:

  1. Start small and grow but a bigger balance is always better
  2. Add more of your own money to it regularly
  3. Injecting a lump sum will suddenly accelerate earnings
  4. Allow it to run for a longer time, provided that the investment is going well
  5. Every bit of investment return counts but you should be comfortable with the associated risk
  6. Keep fees or costs as low as possible to achieve the desired result
  7. Also think about who receives all this money if you pass away

C’mon, kick that debt and let’s get into the good stuff.