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Choose to Be Rich
Wealth is a choice—and with every dollar we choose to be rich or poor.
Every time we go to the mall and buy an unneeded item of clothing, the latest gadget, a fancier car than we can afford, and even every time we buy a toy or game for our child before investing for his or her future, we are choosing to be poor.
Realize that for every dollar we spend today on things that depreciate in value, we’re actually throwing money away that could have grown into $4 over the next 16 years.
When making purchases and investments, it is important to not just think about the present value of your money, but also the future value of your money. It is only then that you realize what you are truly sacrificing in any particular transaction.
As we teach in the ninth Supreme Principle of our book, The Baron Son, anyone can build significant wealth over time by taking advantage of the power of compounding. However, for those who procrastinate and postpone investing for the future, their inaction will be extremely costly.
To illustrate this point, I’ll give three examples of individuals who invest money every month at an annual rate of 9% until the retirement age of 65.
First, is the wise parent who by investing less than $15 month is able to easily ensure that their little boy or girl will be a millionaire by the time he or she retires.
In our second scenario, if that same little boy or girl were to wait until the age of 21 to start investing, it would require $75 a month to become a millionaire—five times the monthly investment of a six-year old child.
And in our third scenario, if that same child were to wait until the age of 50 to start investing, it would require an investment over $2,000 a month to become a millionaire—more than 25 times that of the 21-year old and 130 times that of the six-year old.
Remember procrastination is the enemy of fortune and just as your investments compound, so do your debts. So, invest before you spend and avoid at all costs paying out to others the millions you deserve.