The Best Investment Strategy

No matter what you may think or want today, what you will certainly want down the road...5,10,20 years from now ... is more money!

Each dollar you spend today is reducing your wealth by more than a dollar years down the road. 

Each day we make decisions with our emotions which affect our future financial well being.  Buying things that make us feel good or avoiding dealing with financial matters that are daunting. Whether it’s the $5 latte or new car. Maybe it’s procrastinating on changing your cell phone service plan or finding a bank with a better rate for your savings. Maybe it’s not challenging a bill or a fee. 

Conventional financial planning and budgeting focus’s on numbers. Save $X per month or I need to make $X per year or I can only spend $X per week. 

This is difficult...almost impossible....without recognizing our present and emotional bias. Overriding the desire for instant gratification is not for the faint of heart...unless you stop for a moment to consider future implications.

Put aside the your savings goals and budgets for a moment or forever and prioritize your desires. 

“Would I rather have this now or be able to do that when I’m older”

“Is this really necessary or is it just nice to have”

Take a minute, a day or a year before deciding to spend money on something. Know that spending less now will give you significantly more later. It may not work the first time or the second but keep doing it and things will start to change and your wealth will start to grow.

By aggregating the marginal savings and reinvesting you will be moving the decimal in your future net worth to the right!

To get a feel for the opportunity use this calculator to play with the numbers and see what could happen.

The next article will discuss where to reinvest.