wealthcoaching.org

You know, it has been some time since I read the Richest Man in Babylon, and on re-reading it, I am reminded to say a few words which may be the most important you have heard so far this year….

The first step to financial wealth!

The miracle of compounding

Whatever income you have, take an absolute minumim of 10% (or more if you can) out of the income before it gets to you (pay your savings and investments account first!!!)

Its that simple.

If you did this from the first work day you had at say 18 years old on say £6 per hour (saving only 60p for each hour worked), and it took you til the age of 25 to start getting paid the average wage (presently £13.10), and then you never earnt more than the average wage for the rest of your life, what do you think you would have saved by the time you were 58?

£20,000????

£30,000???

£40,000!!!!???

£50,000!!!!!!!!!???

NO,

If you simply saved it and stuck it under the mattress, you would have £186,000 pounds.
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.

But if you had put it in a savings account and compounded the interest, this could give you about £450,000 pounds in a 5% interest account by the time you were 58…
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and if you had placed it into a higher yield asset such as property or the stock market which has averaged around 10% growth over the last 50 years, it would be worth approx £1,430,000 pounds, nearly a million more than the savings account

(** email me at john@wealthcoaching.org, if you want the copy of the spreadsheet I used or any other explanation – also, NOTE: take advice before investing in riskier asset classes such as the stock market or property).

So, if you wanted to be a millionaire, it is that easy, and you would hardly notice it happening if you didnt peek at the investment account every now and then.

NOW,

If you waited until you were 25 before you started saving, in a savings account at 5% you would have £70,000 pounds less than starting at 18 (£380,000 pounds) or in a 10% growth asset class “only” £995,000. So, how about that… those 7 years savings at even low wages, can make a £435,000 pound difference by the time you were 58.

Think about it and GET THIS!!!!

START NOW. It is never too late to start being wealthy!

If you are 40 years old and wish you had started at 18, and decide its too late, I can promise you when you get to 50 you will wish you had started at 40. This is true whatever age you are; in 10 years time you will wish you had started today.

NOW is a great time to start this very simple practice, and you will hardly notice the difference in your day to day living because you would just cut back occasionally on the odd capucino… reduce expenses, save money, and invest in assets…. and as Robert Kiyosaki of Rich Dad Poor Dad fame might be heard to say – dont doodad it!

It doesnt matter what age you are, or how much you earn, START NOW, do not put it off even one day, and you will thank yourself later, and so will your children and loved ones and tell your children about this miracle of compounding also.

DO this, and make a difference for yourself and the people you love.

And, if you applied the same concept to your business, just imagine how much your business would be worth now. It is the same deal, do not put your cash under the mattress, do not spend on doodads, invest a portion of your income wisely in assets!

Watch out for the second step to financial wealth, coming in a week or so time.

Warm regards and good wealth to you

John Cato, ACMC, MPNLP, the Wealth Coach
______________________
www.wealthcoaching.org
+44 (0) 7973 208940

If you want one 2 one coaching, please email me at john@wealthcoaching.org,
or call me on +44 (0) 7973 208940

** Any information on this site is provided solely to enable you to have greater awareness of your possible choices, and to make your own decisions; it does not constitute a personal or personalised recommendation.

This entry was posted on Tuesday, September 12th, 2006 at 11:43 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.