On to the next opponent.
Our investments are set, we have our financial plan, we understand we are playing chess not checkers, now what do we do…
WELL, WE KEEP ATTACKING using the strategy we implemented until we reach our goal.
We have to our advantage, a secret weapon which our opponent is not ready for: Compound Interest
Albert Einstein who some regard as the smartest person who ever lived, reportedly described “compound interest as the eight wonder of the world.” It is the equivalent of a cheat code in a video game. It is the muscle, it is the equivalent of having power of a Queen on the chess board with no risk of losing her.
Simply put, WE NEED COMPOUND INTEREST TO ACHIEVE OUR GOAL.
Now how do we utilize it?
Well once our plan is in motion, we need to let the plan work and allow compound interest to do it’s thing. Your money will grow exponentially if you give it time. For instance $500 invested every month for 20 years ($120,000.00 total contribution) will grow close to $250,000 with an average interest rate of 7%. That same amount will grow to almost $650,000.00 if you achieve a higher return of 16% person over time. Thats crazy!!
So I’ll say it again, WE NEED COMPOUND INTEREST TO ACHIEVE OUR GOAL.
Once your investments are set and you’re letting them grow with the power of compound interest, now its time to look for other avenues of investing aka running multiple chess games at once.
You have the knowledge and the skill to be successful, achieve financial independence, and create generational wealth. You just gotta play the game.
Remember its the long game and financial Independence and generational wealth are not created overnight.
As always if you have questions or concerns regarding creating an emergency fund, investing, real estate, insurance, or planning for the future, don’t be afraid to speak with qualified financial advisor. Smart Asset has a great tool to find an advisor in your area or feel free to email me (contact@surgifi.com) to help you on your path to financial independence.
Follow us on Social Media
This is great! Compounding is the key, otherwise any money you set aside is going to lose value due to inflation. I remember when I got my first Roth IRA and the banker didn’t even give me info on how to choose investments in it. The money sat there for a few months and I earned less than 10 cents. Even being bad at math I realized that was NOT the way to get to retirement.
Thanks for the helpful calculator!
Thanks for the feedback!! I remember being in a similar situation where my money was invested in mutual funds that closed soon thereafter. I had no clue how to invest more money.