I’m sure you’ve seen and heard all of the stats about people not saving enough, spending too much and simply put their pile of debt is suffocating them. If you haven’t read about it elsewhere, you can easily read about it on my blog. But instead of focusing on more and more numbers and stats I want to shift focus with this article to encouragement. Four simple words that you might have once believed but you no longer do. You can do this.
Class dismissed…well not really. You know by now that I’m going to be more long winded than that. Always remember that you can do this, believe me it is possible. Make saving a habit, make it such a normal part of your day to day life that it is just like eating, breathing or sleeping. Believe me, it gets easier with time. Your still skeptical though right? Well, here is some math to prove it.
So you have 1 sad lonely dollar. Don’t hang your head, everyone has to start somewhere. Your goal is to save $10,000. In other words you need your dollar to grow by 10,000 times what it is today. Seems impossible doesn’t it. But lets say you work really hard to save $100. You now only need 100 times more to reach your goal. Seems more reasonable doesn’t it. Lets go a step further and say through hard work like you wouldn’t believe you’ve now saved $1,000. You now only need 10 times more money to reach your goal.
See, as you save more, your multiple decreases. In other words, it will take less time to reach your next stepping stone than it did to reach the first one. Your money picks up steam over time just like your car does after rounding the bend when going through a roundabout. As your money grows it also accelerates, it’s take less time to reach even greater heights. It’s a wicked awesome concept that is simply ignored.
Remember how I said I was long winded. Well, sorry but I have one more example to hammer the point home. Lets say you have $50,000 to invest, your such a show off by the way. In 33 years you will have $1 million saved at a 10% yearly return rate. In only 7 more years you will have $2 million and then in only 4 more you will have $3 million in the bank. See how amazing this concept is. There is a huge decline in time from the first to the second million.
So remember, what seems impossible today is actually possible. Not only that, you will be amazed at how fast your savings accelerate over time. This whole savings thing does get easier as time goes on. You can do this. No matter the goal, no matter the hurdles in your way, you can do this. Never forget those four o so powerful words.