Time Is On Your Side

Hustle, education, talent, and even currency itself are all tools and resources to help you achieve your financial goals. There is an additional resource for making money that many don't acknowledge, and all you have to do is… WAIT.  Time is our most valuable resource, and you can invest it wisely.

When it comes to making money, time can be your best friend or your worst enemy.  My advice: make it your friend.  The easiest way to do that is by investing as soon as possible, even if it’s only a small amount.  Let’s say person A starts saving $100 a month and does this for twenty years, earning 4% interest every month, while person B saves $200 a month, also earning the 4% interest, but only invests for 10 years. Using the monthly compound interest formula (A=P(1+r/12)^n), we see that person A will end up with $36,677 and person B rakes in $29,450.  So even though person B saved twice as much per month and got the same interest rate, they still didn’t clear as much as person A simply because of the TIME spent saving. 

Keep in mind that as you make more money through raises, promotions, or business ventures, you’ll be able to save more.  This will increase your principle, which will earn even more interest over the same amount of time.  But whether or not you decide to up your contributions, you can be sure that the money already saved is growing like a plant that only needs to be watered by TIME.  It’s great to get out there and work hard for your money.  But the sooner you make your money work for you, the sooner you won’t have to work at all.  Remember, all you need is ‘TIME’ to get your money right!

- RiCO