(Photo used with Creative Commons permission from the Vancouver Library) on Flickr
In the past, If you could actually get someone to start saving and investing, it was likely they would do it begrudgingly, as they hadn’t a clue what the endgame was. Teens and young adults were often forced to save or incentivized to save by older relatives dangling cash in front of them, cash which could only to be used for savings.
Today it’s a bit different. Younger people are much more aware (at least) that they need to save and many are excited about it. Which is good news. The bad thing is they still might not know the endgame.
What is the Endgame?
The endgame is that for whatever retirement plan you have, it provides you with income later on. That’s the goal. And that income can come from something that pays you income (dividends, rent, business profits etc) or from selling things at a profit (stocks, collectibles, cars, etc). Therefore, when investing, if you keep this thought in mind, you may approach the whole challenge a bit better from the beginning – with a plan.
For example, maybe you plan a rental income strategy where you will compound real estate holdings over a period of 20 years to provide you with a future income base of X dollars. Or perhaps you plan to compound dividend stocks to do the same. Others might trade valuable items, let them grow in value and then sell them later for income. Further still, one could invest in a business or a franchise business and plan to collect income from that.
All of these ideas require some thought before undertaking the endeavor. They require a plan of purposeful actions (yes some do happen accidentally to success but why risk that?). If you are contemplating the journey to financial freedom, have you thought about or even started your action plan? What will it look like? How will you proceed?
Taking action now means more time for your ideas to compound. Remember, it’s not just financial wealth that compounds – knowledge wealth does too. If begin the process now, you start learning now and mistakes are made at younger ages, not when it’s too late. Then in twenty years, you will have better compounded wisdom and knowledge and your results will be even better than they are now.
Think about that- compounding knowledge – think what a different will make to you in 10-20 years.
If you consider yourself a professional financial athlete in training, consider some coaching from someone who runs their own business and practices what he preaches. Call our office to speak with Chris – schedule a free phone appointment or drop us a note online through our contact form here and tell us about your big plans.
