I just watched a video on Youtube from the Erin Talks Money channel that I wanted to highlight. She brought up an alternative way that new investors should think about purchases.
Overall, it is about focusing on the potential tradeoff between a purchase made today versus what that money, if invested instead, could turn into in the future. She told a story about how listening to Warren Buffet make this point was a eureka moment for her.
What Warren Buffet said was that every dollar that we can invest today can turn into $100 in the future. For example, if you purchase $10 worth of goods or services right now you are likely giving up $1000 dollars down the road. That is a profound way of putting needs versus wants into perspective.
I do appreciate that there is no guarantee that every $1 will turn into $100, but the math is very solid that it will definitely grow. And, the longer you can let compound interest work for you the more that it will grow. That is really powerful.
So, get started today and know that every little bit that you can put into an investment portfolio will absolutely make a difference! It very well could grow to a $100/$1 ratio. Again, the math works. You just have to get stated and be patient and disciplined.
Don’t wait!
As always, if you are looking for a gift for the young reader in your life, you can find some great children’s books on Amazon. Just go to these links The Desert Fairies of Oylara, The Rainforest Fairies of Oylara, and The Artic Fairies of Oylara and order them.
Finally, check out some pretty cool music on YouTube if you have a few minutes: Introduction , Mosh, Smoke, Watch Out , and First Day Out. Enjoy!
Patient and Disciplined Saving 