While enjoying our lunch (I have the Pho Seafood and Lloyd had the Lemongrass Chicken), we talked. We were reminiscing on the good times and the trial times. One time,the conversation turns into a future topic: retirement.
We evaluated where our finances takes us today, and we were so glad we started investing early. We happy that we begun our retirement funds journey long time ago. We both agreed that it was a wise decision to set aside some of our paycheck and sacrifice the lifestyle we desired. Dave Ramsey once said,"Live like no one else so later on you can live like no one else." And it's true.
We remembered some of our friends that hesitant to invest their funds. Some of them said,"It's not the right timing. Market already over saturated. I'm waiting for the crash." Well... it's true that in 2008 and 2009 market was crushed down and recession hit. However, since 2009 until now, 2017, market has been up 45%! While he was waiting, he's missing 45% growth already in his would-be-portfolio. An opportunity missed!
Some other friends shared with us that they cannot afford to set aside even just 1% of their income. My husband wisely said,"Anybody should be able to decrease their lifestyle 1% lower. If not, they need to revisit their budget." I know it's hard already to live in today's economy, but it will be harder to grow your wealth if you don't start investing at all. Inflation will take 3 to 4% away in the future, so you should grow your money in a place that can give you at least 5% or higher.
I figure that we are not arrive in our today's destination in one night. There are daily habits that we developed over the course of 12 years of our marriage.
And these good habits are:
1. Budget.
Budget are not rocket science. Basically budget is knowing how much in and how much out. Income minus expenses equals net profit (or loss). You must command where your money goes. You must behave them. Otherwise, you'll be a slave to your money. Your money doesn't dictate you, you control them. And budget is the best tool to "conquer" your money.
2. Save.
Don't live 100% of your income. The good rule of thumb is 50/15/5. 50% spend for necessity. 15% for retirement (investment). 5% for short-term emergency savings. The rest 30%? It's yours. Do what you want. If you want to save more you can. If you want to have fun, you still can. But the bottom line is, you have to save. If you want to win with money, you have to start saving. Take that short-term sacrifices to win a long-term success!
3. Invest.
Invest some of your money. Experts say 15%. At least. You can always do more if you want. Don't wait until "the market is right". Don't wait until your condition is perfect. There is never a perfect right moment anyway, so why don't start now. Watch your money grow. And always consult with an expert, a financial adviser. Especially if this is a new area to you. Read investment blogs or books or magazines. Sharpen your knowledge. When you investing your money, your future self will thank you that he/she doesn't have to work as hard later in the golden years because they younger you already "plant that money tree".
The simple 3 good habits have paid off, and we're just only in the beginning! I can't wait to see how our future finances look like in the next 10, 20, 30 years!!!
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