What would you say is more important in your life: Time or Money?
Everything in our life can be directly related to money. I have tried over and over to come up with one single instance where money doesn’t affect life, and no matter how hard I try, I still can’t think of anything.
Our feelings (both good and bad)
Our satisfaction (or dissatisfaction)
Our quality of life
Where we live
What we drive
What circles we run in
What we do for fun
I can go on and on here, but I know you get the point.
The good news is money is a renewable resource.
It’s never set in stone, and if ever you lose a little bit of money (or a lot), there’s a very high probability you will always get it back.
Think back to a time when you lost more than $100. This could be the result of a bad investment, lending money to a friend without repayment, buying something really stupid, or maybe all of the above.
Did it really ruin your life?
Of course not.
Andrea and I literally went completely broke in 2011 and today we are in the best financial shape of our lives.
I recently paid a traffic ticket for $454 and I survived.
I invested $5,000 into an “idea” for Money Peach and it was a complete flop. However, today you are still reading Money Peach.
Nate Adams (Episode 33 Money Peach Podcast) lost over $150k with one single mistake he made when he started his business. Today his business is doing really really well
Samsung launched it’s Galaxy 7 in August 2016 and two months later the phones were recalled after spontaneously combusting on airplanes. The company will lose $17 billion because of this fiasco and they are still selling phones like crazy!
The takeaway: We have all paid the price with money and we are still here to talk about it.
What about time on the other hand? I want you to take the next seven seconds and watch this clock tick….
I’m sorry 🙁
Let me take this one step further:
If you are 20 years old, you only have 728 months left (to live)
30 years old = 606 months left
40 years old = 484 months left
50 years old = 363 months left
60 years old = 241 months left
70 years old = 120 months left
Unlike money, once time is lost, it’s gone forever.
Time is much more important than money.
Ben vs Arthur
If I had to choose the one thing I would teach a senior in high school, this would be the lesson.
There are twin brothers, Ben and Arthur.
At age 19, Ben decides to invest $2,000 every year into a mutual fund. Ben does this for eight years in a row, and decides to stop investing at age 26. Ben invested a total of $16,000 and he never takes the money out of the mutual fund and instead allows it to grow over time.
His twin brother Arthur is very interested in what Ben is doing and decides he is going to start doing the same. However he doesn’t start until age 27.
Arthur invests $2,000 every year into the same mutual fund as his brother Ben, and he does this for the next 39 years and stops at age 65. Arthur has invested a total of $78,000.
At age 65, the two brothers compare side-by-side how much they each invested and how much they end up with.
Arthur invested $78,000 over 39 years and has $1,532,166
Ben invested only $16,000 over 8 years and has $2,288,996.
Ben has $756,830 more because he started earlier!!!
This is the power of compounding growth over time.
Disclaimer: The above example was first published by Dave Ramsey, not by me. Also, Dave has built this example of a 12% rate of return on the mutual fund. There are many people who disagree with Dave’s 12% rule, but this isn’t the point of the example.
The example is to illustrate one thing and one thing only: starting early is always better than starting later. Time is NOT on your side and it’s not renewable.
Taking Action Can’t Wait Any Longer
If you are between 18 and 24 years old and this message hits your heart and is then stored in your brain, then congratulations – you are going to be a multi-millionaire.
However, if you’re like most of us who are age 30, 40, 50 or older, you still have time to get started. Of course it’s much easier to start at age 20, but remember that clock above? You can’t get that time back, so there’s no reason to even worry about it.
Martha Stewart started Martha Stewart Living…..at age 47
Colonel Harlan Sanders couldn’t live off his social security and started Kentucky Fried Chicken….at age 62
Samuel L. Jackson got his first big break in Pulp Fiction…..at age 46
Ray Kroc was a milkshake-device salesman when he bought McDonald’s…..at age 52
The takeaway: it’s never really too late to start (but it’s so much easier to start earlier).
Where Do I Even Start?
I tell everyone 100% of the time to start with a plan for their money – a budget. You can download my FREE Budgeting tool here, complete with how-to videos and monthly budget templates dropped off in your inbox.
Take Surveys. Get Paid.
You can get started for free, from anywhere, on any device, and earn cash for your next tank of gas, a night out at a restaurant with friends, or for side-hustling your way to saving money and paying down debt.
Check out the full list of the top survey sites here.
- It’s Extremely Simple to Start Today
- You Will Get Help Along the Way!
- Step-by-Step Video Directions to Get Started!
- 100% FREE
To Pay Down Debt and Start Saving, click here.