Do you remember all the stories about how to be a millionaire when you turn 40 and how you just have to save and delay gratification and do it consistently? And I assume you did it just like I did right????
So, say you missed the financial savings memo when you were in your twenties, or you totally disregarded it like I did so you could pay for your car and your darling sneakers. Here it goes:
If a forty year old wants to have a million in savings by age 65 and gets a decent interest rate for a good index or mutual fund, they could invest 20 bucks a day; that’s 7,300 invested every year, becoming about $182,500 invested, which would be about a million at age 65. Now the story goes, that if you start at age 20, you would have a bigger pile of money saved up.
I am not really here to talk about finance because we have already established, if you know me, that I am not the most adept at investing money. What I am really really good at is getting compound interest via doing some healthy day to day activities. My spiritual wealth is much richer than my bank account.
I know you were wondering what in the world landslides have to do with compound interest. When there is a landslide, we hear all about it in our news feed. We hear about the impact and the tragedy and the lives lost and how devastating it is. What we don’t hear about, is slow and steady erosion. It turns out that erosion has moved more earth than all the landslides put together.
What in the world does that say about me and what the heck does it have to do with compounded interest? I figured if it is the slow and steady thing that makes a difference, that is true in my life as well. Disasters are rarely the result of an isolated decision and neither are the victories in our lives. The habits I have today shape who I want to be tomorrow. Why are good habits so hard to come by? We humans want it NOW! I am one of those humans. The concept of delay and denial are not the first thoughts that make me happy. I have learned however, that slow and steady, which is hard for a fast moving girl like me, trumps any outrageous plan I will never stick to!!!!!
If you are not sure what daily habits you need to adopt or which ones you need to kick to the curb, reach out to someone that you trust. People who are successful never tire of encouraging and giving hope to others.
While I think it may be a little late for my compounded money to grow to BIG BIG money, I am convinced that if I develop and continue to develop life-giving habits I will be a happy, happy human. And when I concentrate on my growth I am able to contribute to my world. And one more thing I have noticed, is that I not only reap what I sow, the compound and cumulative effect makes my life better and better.