Free Stop Wasting Your Life & Do Something by Simon Smith Page B
Authors: Simon Smith
started yet, you need to get on with it.
Just as a couple of examples, let’s look at how money compounds over time.
If you’re 16 years old, and you start saving £150/$150 per month now, and invest it at a return of 6%, by the time you’re 40 years old, you’d have £96,167. You’d have only actually saved £43,200, so you’re getting £53,000 interest on your money.
If you carried on investing that £150/$150 per month until age 65, you’d have £533,333. Your actual savings were £88,200, so £445,000 was interest! How good is that?
If you started investing at 16, and stopped investing at age 40, and left your £96,167 in the bank and forgot about it until you retired at age 65, how much do you think you would have? £429,382. Now can you see why you should start immediately?
If you’re 40 years old and you start investing £150/$150 per month now until retirement age of 65, you’d have £103,949. £45,000 was the value of the actual money that you put aside yourself.
Can you see why it’s better to start young? For a 40 year old to accumulate £533,333 by retirement age, they’d need to invest £770 per month at 6% interest until they retire.
The other thing about time is how you spend it. I’ve already mentioned in this section that wealthy people don’t waste time. They spend it wisely. What if, instead of watching TV for six hours per week, you used that time to find some good investments? If you could turn your 6% interest to 9%, your £150/$150 invested over 49 years would grow to £1,598,535. Would that extra million pounds be worth spending a few hours a week on?
What if you spent those few hours per week making, and investing £100 extra per month? Still investing at the lower 6%, your pot would now be £888,889. It’d be worth an additional £350,000 to you.
So here are the key messages from this chapter on time:
Start NOW
Use your time wisely to maximise your returns.
Chapter 26
Wills
Here’s another boring but important subject.
Wills.
Approximately 55% of people in the US die without a will. I would imagine that the numbers in the UK are fairly similar.
If you die without a will, the government will decide who gets your money. How do you feel about that?
If your parents have died, and you’re not married, and have no children, your siblings will get your money. If you have no siblings, and nobody legally has claim to your estate, the government can take the lot.
Does this sound like an ideal situation to you?
If not, I recommend getting a will.
You can actually purchase legally binding wills in the newsagents for a few pounds. Solicitors offer will-writing services for very low fees these days as well.
If you go onto Google, and type in will-writing services in “your home town”, you will find countless solutions. I’ve just found one for £36, which is less than it costs for a decent meal out for two people. Again, this is a small fee, but could save your loved ones a lot of hassle and pain later on down the road.
Chapter 27
Multiple Sources Of Income
One of the habits of the wealthy is to create, or have, multiple sources of income.
If you have one job, and that is where you earn all of your money, there are only a few ways you can increase your earning capacity.
One – Work more hours. Do you REALLY want to do that?
Two – Get a promotion. This is a good idea, but the extra money could come with more pressure and more time commitment.
Three – Earn bonuses or commissions.
All three of these require you to be at work in order for you to make more money. If you’re not there, you won’t be making more commissions, you won’t be getting paid for more hours, and you’re less likely to get that promotion.
What if you had a website that made you money whilst you slept? You wake up every morning and discover that you’ve made more money. What if
Just as a couple of examples, let’s look at how money compounds over time.
If you’re 16 years old, and you start saving £150/$150 per month now, and invest it at a return of 6%, by the time you’re 40 years old, you’d have £96,167. You’d have only actually saved £43,200, so you’re getting £53,000 interest on your money.
If you carried on investing that £150/$150 per month until age 65, you’d have £533,333. Your actual savings were £88,200, so £445,000 was interest! How good is that?
If you started investing at 16, and stopped investing at age 40, and left your £96,167 in the bank and forgot about it until you retired at age 65, how much do you think you would have? £429,382. Now can you see why you should start immediately?
If you’re 40 years old and you start investing £150/$150 per month now until retirement age of 65, you’d have £103,949. £45,000 was the value of the actual money that you put aside yourself.
Can you see why it’s better to start young? For a 40 year old to accumulate £533,333 by retirement age, they’d need to invest £770 per month at 6% interest until they retire.
The other thing about time is how you spend it. I’ve already mentioned in this section that wealthy people don’t waste time. They spend it wisely. What if, instead of watching TV for six hours per week, you used that time to find some good investments? If you could turn your 6% interest to 9%, your £150/$150 invested over 49 years would grow to £1,598,535. Would that extra million pounds be worth spending a few hours a week on?
What if you spent those few hours per week making, and investing £100 extra per month? Still investing at the lower 6%, your pot would now be £888,889. It’d be worth an additional £350,000 to you.
So here are the key messages from this chapter on time:
Start NOW
Use your time wisely to maximise your returns.
Chapter 26
Wills
Here’s another boring but important subject.
Wills.
Approximately 55% of people in the US die without a will. I would imagine that the numbers in the UK are fairly similar.
If you die without a will, the government will decide who gets your money. How do you feel about that?
If your parents have died, and you’re not married, and have no children, your siblings will get your money. If you have no siblings, and nobody legally has claim to your estate, the government can take the lot.
Does this sound like an ideal situation to you?
If not, I recommend getting a will.
You can actually purchase legally binding wills in the newsagents for a few pounds. Solicitors offer will-writing services for very low fees these days as well.
If you go onto Google, and type in will-writing services in “your home town”, you will find countless solutions. I’ve just found one for £36, which is less than it costs for a decent meal out for two people. Again, this is a small fee, but could save your loved ones a lot of hassle and pain later on down the road.
Chapter 27
Multiple Sources Of Income
One of the habits of the wealthy is to create, or have, multiple sources of income.
If you have one job, and that is where you earn all of your money, there are only a few ways you can increase your earning capacity.
One – Work more hours. Do you REALLY want to do that?
Two – Get a promotion. This is a good idea, but the extra money could come with more pressure and more time commitment.
Three – Earn bonuses or commissions.
All three of these require you to be at work in order for you to make more money. If you’re not there, you won’t be making more commissions, you won’t be getting paid for more hours, and you’re less likely to get that promotion.
What if you had a website that made you money whilst you slept? You wake up every morning and discover that you’ve made more money. What if
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