Start in your teens or twenties and retire in you forties or fifties!
So if it is this easy to achieve how come more people don’t do it? This is a great question.
The number one reason I believe people don’t do this is because no one ever taught them the importance of investing or the means to do it. In my case I had enough knowledge to understand compounding and see the future results but I never was shown how to do it. My parents didn’t teach me because they themselves didn’t know how to do it.
I believe and hope that I can break this cycle with my own children and family. To share my knowledge, teach them how easy it is and inspire them to start as early as possible investing. Lead by example so to speak. The younger you are to farther away a time period of thirty years seems but for those of us that are there are beyond we know just how quickly it sneaks up on you.
You don’t have to live in poverty or give up all the necessities of life, nor do you have to give all the luxuries of life, but just enough for you to reach your goals. ( See the Golden Rule of Investing Article) What you do have to do is make up your mind that you are going to work towards your investing goals. Map out an Investing strategy and stick to it. You might have to make adjustments along the way but that is okay as long as you do not give up and lose your focus. It is really difficult to convince a young person to save and plan for events thirty or more years into the future but it should become the parents’ number one focus. Keep encouraging them, keep demanding it and lead by example.
Some of your strategies for motivating your children should include:
- Open bank accounts for them at early ages – When they save enough money have them buy dividend stocks with it.
- Buy Stocks for them as Birthday, Christmas, Hanukah or other occasion gifts.
- Encourage Grandparents and friends to buy stock for them also.
- Help them to set realistic short term , medium term and Long term goals
- Set up tracking charts so that they can track and watch their investments grow, making sure to show them increases in “Monthly Income”
- Help them to identify future rewards that can be achieved
- Discuss the importance of protecting their investments
And while it is very desirable to start investing at as early of an age as possible it is never too late to start investing. I myself was around 40 years old when I became serious about investing, but it would have been so much easier had I started in my twenties or even sooner. I always thought I could not afford it – the truth is looking back I just didn’t want to afford it. That was a big mistake and wish I had someone in my life to teach me and push me into investing.
People in general (including my past self) always seem to have unlimited excuses for not investing. Investing is not a difficult thing to do. The hardest part is staying invested. Most of us have a tendency to follow the herd so every time the herd starts stampeding for the exits most of us tend to follow. This is usually the exact opposite thing we should do. The brave bull that stays owns the pasture when the dust clears.
So my message is you can do it. Push yourself to start investing and teach your children how to do it. In turn hopefully they will teach their children and pass on the knowledge through generations.
Start slowly – Set your goals that you can easily reach – say $1,000 at a time. Once you reach that goal do it again and again. Before you know it you have done it 25, 50 or 100 times and now you are on your way to Independence.
Thoughts or comments on your own personal experiences? We would love you to share them with us! Please comment below.