Saving For The Future

THE ANTS

Look at the ants. They are so tiny and yet so intelligent. They are gathering their foods saving as much as possible before the rainy seasons. I believe the ants have a clear mindset. They know exactly their goals and achieve it with methodology. They know the value of saving for the future. For them, timing is of utmost important. Having correct information on the source of food and the shortest path to reach the goal is crucial to every ant survival. Each ant is willing to participate in disaster preparation taking any risk whatever it takes in order to succeed. No doubt, ants have been a model not only for financial success but also for major scientific research such as the ant colony optimization alias ACO in solving computational problems. This proves that although ants are very small creature, they are very smart.

DO YOU WANT TO BE A MILLIONAIRE?

In order to be a millionaire, first you must have a millionaire mindset. You must follow the ant’s methodology. Your mind should be reprogram and recondition to think differently than what you have been taught in traditional school. For so long time you’ve been brainwashed and have been taught that in order to succeed, you must study hard, have a good job and work very hard to earn your dollar. None of us have been taught how to earn money, how to become rich, how to invest, or how to manage our wealth which is the most important subject in our adult lives. Instead what we received are beliefs like investing is very risky, money is not everything, don’t be so greedy and all kinds of anti-wealth advice. That’s why most people work hard all their lives, going around in circles in the rat race and ending up broke and unhappy. Financial literacy is the key to accumulate wealth.

MAKING MONEY IS A GAME

Have you ever asked why some people earn 5 times, 10 times, or even 20 times than others? Is it because they are 20 times smarter or work 20 times harder? NO. The only reason is they know how to play the game of money whereas most people don’t know how to play the game.

HERE’S HOW THE GAME IS PLAY

Assume you will be working in your fruitful lifetime for 30 years (25 to 55 years of age). If you were to earn a 3,000 a month or 3,000x12=36,000 then in 30 years time you will have approximately 36,000x30=1,080,000.

SCENARIO 1

If you were like most people who spend all their earnings, then you will end up in 30 years with almost nothing. No matter how big you earn, if you spent everything, you will continue to be poor. The measure of wealth is not on how much you earn, but how much is left.

SCENARIO 2

But what if you’re going to save 10% of your monthly income or 300 a month and invest it in stocks or mutual funds that earn 15% per annum and let your money grow with a compound interest. How much you will have after 30 years? Using a financial calculator, you will have 1,803,444.91 by saving just 300 a month. That’s the power of consistent saving, investing and compound interest.

SCENARIO 3

Some people will procrastinate by saying I will start saving when I earn more or have extra income. Believe me, that’s next to impossible. If you cannot start saving a little cent from just a small income, you will not do the same thing when you are earning a big income. Stop procrastination and start saving today.

Let’s look at the impact of procrastination. If you’re going to save 300 for only 25 years at 15% interest, you will have 884,563. But if you will start 1 year later you’ll have 766,054. You lost 118,509 in one year time or an average daily lost of 118,509/365 days=324 every single day you procrastinate.

CONCLUSION

Perhaps now, you know the reason why the ants gather their foods everyday and saving it for the future. The saving habits of the ants spare them from rainy seasons. Avoid the daily lost. Start saving today, start saving for YOUR future.

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