If you put all the information in the last blogs together, hopefully you can get my message. The path to luxury is a road that many attempt to travel upon, but most don’t make it to the other side. With that said, if you can stay disciplined, avoid impulsive spending, and really learn to prioritize what you NEED from what you WANT, then you can at least figure out where to go.
Now, that’s just it; you can figure out where to go, but now it’s about getting there. We all want to rich and live a luxurious life style. It seems like fantasy, but it’s more realistic than you may have imagined it. The biggest element in your possession now is time. You have the discipline, you own everything you have, you’re living off bare necessities and not letting your scoffing co-workers bother you about your beat-up Honda, and now is when you start building – building for the future.
You may wonder if this whole “path to luxury” thing is all about preparing for the future; if this is you, then you are one smart person because it is! You also may be wondering on how you’re going to be a millionaire exactly. You’re saving more than you ever have been, but you’re still not driving Lambo’s or anything. That’s because you need to start investing. And when I say “you need to invest”, I mean right NOW! Right this instant!
Now is where the magic happens: If you invest $2,000 a year ($167 a month) at a 12% interest rate at age 19, but stop investing in 7 years (age 26), you will be a millionaire by the time you are 58. That may seem like a long ways away, but compare that to this: you invest the same amount at age 27 and don’t stop investing this amount until you are 65 years old. Even with a non-stop investment plan, you won’t be a millionaire until you are 62. Even then, at age 66: The one who invested earlier will be at 2.2 million while the latter investor is only at 1.5 million.
This is the power of investing EARLY! Even if it’s not $2,000 a year, or at a %12 interest rate, you need to start investing now. But hold up! You can only do this if you are dedicated and disciplined. Your discipline is what holds the ground under your feet, and keeps you from falling on this bumpy path to luxury. Are you ready?