Monday, January 10, 2011

The Cost of Waiting
Written by Jeff Olson

I’m sure you’ve heard about the power of compounding interest before. In fact, you’ve probably heard about it many times. What makes this different?

Nothing – unless you act on it.

The single most important thing I can tell you about The Slight Edge is this: it’s already working, right now, either for you or against you. So don’t wait.

My hope for you – my request for you – is that before you reach the last page of this book, you will have put in place a Slight Edge financial plan for yourself so that you are consistently building your equity. Some simple, daily (or weekly, or monthly) discipline that over time, will buy your financial freedom.

Easy to do? Surprisingly so. Easy not to do? Tragically so.

To give you a sense of the cost of waiting, look at the following example.

Let’s say you and your best friend are both twenty-four years old; you both read The Slight Edge and decide you’d like to start putting away $2,000 a year into an IRA so you’ll retire at age sixty-five with over a million dollars.

Your friend starts doing it now. You wait. You don’t get around to it this year, or next, or the next … in fact, you procrastinate for the next six years.

At the beginning of year 7, you ask your friend how his IRA is doing. You are stunned when he tells you he’s finished: after investing $2,000 a year for six years at twelve percent, he’s all set. By the age of sixty-five, the little financial ball he’s started rolling will have snowballed into over one million dollars – even if he never puts in another penny!

That’s it, you decide, it’s time for action. You start putting in your $2,000 each year. How many years will it take before you’ve caught up to your friend? In other words, by what age will you be able to stop investing your annual $2,000, like he did?

You can’t believe your eyes when you see the answer: you’re going to have to keep investing that $2,000 every single year until the age of sixty-two! Your six years of procrastination has cost you thirty-three years of investing – that’s twenty-seven more years and $54,000 more invested just to arrive at the same place!

“But what if I’m not twenty-four – what if I’m forty-four? Or sixty-four? Does that mean I’ve missed the boat – are you saying it’s too late for me?”

Not at all. You’re never too old, and it’s never too late, to start applying Slight Edge tactics to achieve your dreams, financial and otherwise. In fact, best-selling author David Bach has written an excellent book titled Start Late, Finish Rich, addressing exactly that issue. Like all the other books I list in the Appendix, it’s a great companion to The Slight Edge. My point is simply that there is a cost to waiting.

It’s never too late to start.

It’s always too late to wait.



Your Friend

You

Age

Payment

Accum.Total

Payment

Accum. Total

24

$2,000

$2,240

0

0

25

2,000

4,749

0

0

26

2,000

7,559

0

0

27

2,000

10,706

0

0

28

2,000

14,230

0

0

29

2,000

18,178

0

0

30

0

20,359

$2,000

$2,240

31

0

22,803

2,000

4,749

32

0

25,539

2,000

7,559

33

0

28,603

2,000

10,706

34

0

32,036

2,000

14,230

35

0

35,880

2,000

18,178

36

0

40,186

2,000

22,599

37

0

45,008

2,000

27,551

38

0

50,409

2,000

33,097

39

0

56,458

2,000

39,309

40

0

63,233

2,000

46,266

41

0

70,821

2,000

54,058

42

0

79,320

2,000

62,785

43

0

88,838

2,000

72,559

44

0

99,499

2,000

83,507

45

0

111,438

2,000

95,767

46

0

124,811

2,000

109,499

47

0

139,788

2,000

124,879

48

0

156,563

2,000

142,105

49

0

175,351

2,000

161,397

50

0

196,393

2,000

183,005

51

0

219,960

2,000

207,206

52

0

246,355

2,000

234,310

53

0

275,917

2,000

264,668

54

0

309,028

2,000

298,668

55

0

346,111

2,000

336,748

56

0

387,644

2,000

379,398

57

0

434,161

2,000

427,166

58

0

486,261

2,000

480,665

59

0

544,612

2,000

540,585

60

0

609,966

2,000

607,695

61

0

683,162

2,000

682,859

62

0

765,141

2,000

767,042

63

0

856,958

0

861,327

64

0

959,793

0

966,926

65

0

$1,074,968

0

$1,085,197

Reprinted with permission from SUCCESS Media ©2011. As a best-selling author and noted personal-achievement expert, Jeff Olson has spoken to more than a thousand audiences throughout the United States and around the world. Over the past twenty years, he has helped hundreds of thousands of individuals achieve better levels of financial freedom and personal excellence. For more information on Jeff and his popular book, The Slight Edge, or to purchase the book in print or audio CD editions, visit www.SlightEdge.org.
Post a Comment