Our Dollars Need Friends TOO!
Nov 21, 2019
So, it would be a lie to say that I'm not a perfectionist - I'm working on it though.
I used to believe that things had to be "just right" in order for me to get something done but I realized after not reaching my goals and seeing slow progress that perfection was a waste of time and opportunity and costing me money not being made 😬
For example, Disney +... we all know how hype people were for the release. Hell, 10 million people signed up in 24 hours!!
Let's do some quick math... 10 million sign ups x $6.99 (roughly) = $69,900,000 in revenue after the free trials
Why is this important? Well, Disney + was nowhere near perfect. When they launched, titles weren't playing and there were a bunch of errors on the platform.
Yes, they've fixed the issues for the most part but the point is it wasn't the "perfect" environment or scenario but they would still manage to make about $70,000,000 after 7 days.
Honestly, the platform will never be perfect. I mean we're talking about technology here. If you have Netflix or Hulu, you may already know that titles still don't play 100% of the time and they've been around for a while.
Ok, so, what does this have to do with you? Well, many people want to wait for the perfect time to get their finances together, especially when it comes to investing.
They say, "I want to wait until I'm debt-free to start investing" and I'm going to say that's not the greatest decision.
Think about it this way, you're spending money monthly on things not providing a return so that means that's money going out and you're never going to see it again.
BUT if you are investing your money at the same pace that you're spending on debt, the dollars going out have a good chance on coming back with some friends... we want our dollars to make friends 👀
That's money that is helping you replenish what is being lost/spent on debt.
I don't care if you're paying $1,000 in debt a month for 48 months ($48,000), if you can manage to invest $500 a month at 8% for the same amount of time that's $28,975.70... which means in this case you only really lost $19,024 instead of $48,000.
Now, the beautiful thing about compounding interest is, the longer it's compounding the better the numbers look. That $500 a month at 8% for 8 years turns into $68,189.00. At 12 years it's $122,188.83 and at 16 years it's $196,550.89!
Of course, once your debt is paid off I would increase how much you'd invest but at these current numbers, you'd still be winning.
If you waited those 4 years to start investing your numbers would look like this.
4 years- nothing
8 years - $28,975.70
12 years - $68,189
16 years - $122,188.83
You would be missing out on $74,362.06 because you waited 4 years!
Would you let 4 years and $48,000 in debt cost you 4 years and $74,362.06 in income? I HOPE NOT!
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