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Personal Finance
Foresight Is Meaningless Without Action: Are You Still Not Investing?
The most powerful thing you can do with your money is to invest it, yet we still aren’t doing it.
Most people know that investing leads to wealth, or at least we’ve heard the words more than once or twice. It is a fact that the sooner you start investing, the sooner you can experience wealth, financial freedom, and financial independence.
Compound interest works best to your advantage when you start young. Yet, how many of us invest when we are young? Most opt to start investing in their 30s and 40s, playing catch up the rest of their lives.
Plan With The End In Mind
The second habit in The 7 Habits of Highly Effective People is to begin with an end in mind. The 29th law in 48 Laws of Power is Plan all the way to the end.
“By planning to the end you will not be overwhelmed by circumstances […]. Gently guide fortune and help determine the future by thinking far ahead.” – Robert Greene
I have two questions for you:
What will happen if you don’t start investing now?
What will happen if you do start investing now?
The Story About Investment
“A man went off on an extended trip. He called his servants together and delegated responsibilities. To one, he gave five thousand dollars, to another two thousand, to a third one thousand, depending on their abilities. Then he left.
Right off, the first servant went to work and doubled his master’s investment. The second did the same. But the man with the single thousand dug a hole and carefully buried his master’s money.
After a long absence, the master of those three servants came back and settled up with them. The one given five thousand dollars showed him how he had doubled his investment. His master commended him: ‘Good work! You did your job well. From now on, be my partner.’
The servant with the two thousand showed how he also had doubled his master’s investment. His master commended him: ‘Good work! You did your job well. From now on, be my partner.’
The servant given one thousand said, ‘Master, I know you have high standards and hate careless ways, that you demand the best and make no allowances for error. I was afraid I might disappoint you, so I found a good hiding place and secured your money. Here it is, safe and sound down to the last cent.’
The master was furious. ‘That’s a terrible way to live! It’s criminal to live cautiously like that! If you knew I was after the best, why did you do less than the least? The least you could have done would have been to invest the sum with the bankers, where at least I would have gotten a little interest. ‘Take the thousand and give it to the one who risked the most. And get rid of this “play-it-safe” who won’t go out on a limb.'”
Matthew 25:14–30, The MSG
Four Lessons From The Story About Investment
Those given much will be given more – especially those who utilize their money prudently.
Those who manage their money poorly and don’t invest, even what little they have will be taken from them. These people will end up broke.
Investing requires a certain level of risk; get comfortable with potentially losing a little money so that you can accumulate great wealth.
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Some people recommend you pay off your debts before investing. However, you can’t get back time, and time is the greatest gift for investors because of the magical term: compound interest.
Don’t wait to invest. Invest now.
Max out your Roth IRA.
Max out your employer’s 401k. Get the match; that’s free money!
If you don’t have an employer, get a brokerage account and invest in mutual funds or ETFs.
Investing is too serious a business not to participate. You don’t need to be an expert; you only need to start. If you don’t know what you are doing, get involved with robo-investing. Robo-investing will get you started with investing without having to put in the effort to educate yourself. However, if you are unfamiliar with investing, educate yourself to be an informed decision-maker.
For free personal finance classes, calculators, and more, check out the MOAM reader resource page.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.