Ever thought how easy it might be to have over £1m in liquid assets?
This group will help you achieve just that.
The calculation is fairly simple. How much do I need to invest regularly, given a certain growth rate assumption, and for how long?
There is a key secret here. With investing, It’s time. A very long time, decades in fact.
As Morgan Housel says in his book The Psychology of Money, “Warren Buffett is a phenomenal investor. But you miss a key point if you attach all of his success to investing acumen… His skill is investing, but his secret is time.”
And you know what Buffett said?
“Benign neglect, bordering on sloth, remains the hallmark of our investment process.”
So, where do you think you’ll be in a year? Five years? Twenty years?
We as adults are often quite bad at imagining what we want our futures to look like, which makes it difficult to set financial goals. Think about it, how did you imagine yourself as a kid? There’s a high chance that there are some gaps here, right?
We often talk about long time frames with financial goals. Retirement for most of us seems like a lifetime away – 20 or 30 years which makes it very difficult to plan for.
With these long-term time horizons in mind, it becomes easy to rationalize the decision to not do anything. In fact, our future selves can actually often feel like some other annoying person constantly stealing heaps of fun from our current selves.