A lot of people are dreaming to be rich or may I say financially independent. But many don’t have the discipline to work and save and see their money grow. They are impatient and would like to get rich quick. They would rather enjoy life now and spend what they have rather than delay their gratification and save up for a better future. Because of the desire to get rich quick, they engage in questionable investment schemes, highly speculative stocks and even buy lotto tickets or join a game show. Unless you are a Hollywood celebrity who will earn millions of dollars after doing a movie or a business tycoon who earns thousands of dollars a day or marry a rich person or win the lottery (you may add to the list), the rest of us will have to work, save and invest for our retirement funds and other needs.
Is it possible for a person to end up with millions for retirement even if he is just a regular employee like a call center agent, sales associate, bank employee or anybody who is earning a meager income? I believe the answer is “YES!”
It starts with having the right mindset. Most people have a mindset of consumerism. They live for the present. They spend ALL their hard-earned bucks for things that do not have lasting value i.e. shoes, clothes, the latest iPhone or gadget, a new car, frequent dine-outs (date nights with wife is fine, of course!), an exotic vacation, etc.
While I can always find the justification for such expenses, the real questions are “Do I need it?” and “Do I have the budget for it?” Don’t get me wrong. I’m not leaving faith out of the equation. I am merely pointing out an irresponsible and oftentimes presumptuous approach to finances and spending.
We have to change our perspective from short-term to long-term thinking. As my friend Chinkee said, “The poor thinks daily in terms of making both ends meet. The middle class thinks in monthly terms. Whereas the rich thinks in annual cycles or even decades when it comes to investments.”
In other words, the longer the term of perspective, the better the decision-making.
When my daughter Bea was around 8 years old, we brought her to Toy Kingdom. When we entered the store, I gave her P100 and told her, “You can buy anything you want with your money (which was not much) today or you can wait another time and I’ll double your money so you can buy a better toy.” She was excited as she walked in to the huge store with millions of pesos worth of inventory. Guess what she did. She decided to use the money to buy stationeries and other small items, which did not last a day.
She saw an opportunity to buy but failed to see the other opportunity of doubling her money if she just waited. Just like her, all of us are exposed into the world where billions of products are for sale. There are so many choices to make. But instead of waiting for a better opportune time, most of us decide to go for the kill and buy what we want even if we can’t afford it. Some even spend tomorrow’s income today by buying on credit installments or mortgages. You have already committed future income payments for the item that you buy today. People want to look rich instead of really being rich. Huge difference.
Prov. 13:7 One man pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth.
Again, the longer the term of perspective, the better the decision-making.
More on this topic in my next blogs . . . .