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Time is Money, Friend, or Foe
We've all heard "time is money." And when combined with something like inflation, time can also be your worst enemy. Fortunately time can also be a best friend to those who use it wisely. Here's an example.
Imagine there are two investors, call them A and B. Investor A saves $10,000 today. Investor B saves nothing today, but saves over time by saving $10,000 every decade for the next 30 years. So in total A saves $10,000 and B saves $30,000, shown below.
Let's also assume that A and B invest in the exact same things and earn the exact same returns over time. For simplicity we assume annual returns of 7% and ignore taxes and costs. After 30 years the results for A and B are shown below.
Investor A's $10,000 grows to $76,123 while Investor B's $30,000 only grows to $68,369. A achieved over five times more return than B (661% vs 128%) even though B invested three times more than A. There's no trick here, that's just how the math works. Compounding is one of the most powerful ways to grow your money, but it takes time. Fortunately most of us still have some of that left. Will you let it go to waste? Will you turn a friend into a foe?
We all know we should save and do more, but then there's the mortgage, the new job, the kids -- it's always something. But why wait any longer? Yes, starting yesterday would have been best, but today is still better than tomorrow. Don't waste another day, start putting your money to work right now!
Not sure how to begin? Then let the experts at Bellwether Capital Management LLC help you get started with a complimentary financial review. You'll consult with a local, knowledgeable, and experienced investment adviser who will answer your questions and get you moving in the right direction. There's no cost or obligation, but the number of free reviews are limited, so enter your info below to reserve yours today.
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