Have you heard this saying before? If you answered yes then you are not alone, this phrase is one of the most popular phrases of our time and for many decades. Benjamin Franklin is quoted as the originator of this quote. But do you take it for what it is literally or do you really grasp the meaning behind it? I have this exact quote up on this website if you look 45 degrees to the right you will see a cool watch with money representing the old adage of the phrase.
Even if you are not obsessed with the meaning like I am, I think we all can use our time more effectively. Can I ask you a simple question? What would you be doing right now if you did not have to work for earned income from a job? If you ask me that question I would probably be doing something relating to sports. Biking, running, swimming, strength training, basketball, even rowing for gosh sakes, all of these activities is what I would do be doing. I would alternate each one of these every day until my bones yelled at my brain to stop the torture I am placing on them. I am exaggerating of course, as I am a family man and I will definitely spend the majority of the time with them, I cannot be that selfish.
At times I wonder when I am at lunch all those guys I see on random occasions, bike riding around town as if they are already in the retirement stage and can do as they please. Well if you plan now early in life you can realize it sooner than later, because you guessed it, Time is Money and money can buy you time. Freedom from being tied down to a desk, from scrubbing a deli counter, or from doing the myriad of jobs in this world. The ultimate Freedom is a sweet pleasure only a few folks and retirees can speak of. But you might say to me, RichUncle EL I like my job and I’ll say to you, more power to you and ask you, but would you do it if you had an income stream of 5 grand a month from investments? What will be you’re answer? You will never know because you are not taking the steps to gain the freedom to live your life the way it is supposed to be. I see people who waste funds living great now, but how long will that last or how long will you have to work later to pay for your retirement because you live extravagantly now.
The average person works about 35 to 45 years and then retires tired and jaded because it took so long to be free. Now why would anybody want to be so far away from freedom for the majority of their life? If you could make or take a few small steps now that may potentially save you 15 years later, why wouldn’t you do it? Most people get corporate jobs to gain financial freedom, but does it really buy you that freedom if you do not take advantage now.
Time is Money Action Steps:
1. From the very first job you have save at least 20% of gross pay towards financial freedom
2. Buy dividend paying index funds or stocks, let the reinvestment continue until you are ready to retire
3. Avoid Debt at all costs ( If burdened by it, pay more than the minimum to eliminate it)
4. Do not touch aka take out- Retirement funds ever ( This includes loans)
5. Learn a skill that you can teach others and perfect it. (This can help you retire sooner)
6. Read and learn what you are investing in- Don’t do it blindly
7. Negotiate on everything that can be talked down price wise
8. Real Estate can be a golden opportunity for you
9. Have a plan / goals, and stick to them
10. Have a plan- for after retirement as well
OK now you realize how important your time really is? To express how important time is I recently ran my social security estimation numbers and I noticed that if I retire by 40 I will get a thousand less a month than if I were to retire by 55. Is a thousand per month really worth 15 more years of working for the man? I don’t think so in my opinion. If I were to work till 67 and continue feeding the social security system I will get about $3,500 more a month in benefits, 27 more years of my life I feel is worth a lot more than that. So I have a plan, including the steps above, that I will not expect social security to be around forever and that my investments will allow me the freedom to leave my actual ball and chain job very early so that I can fully enjoy what life has to offer me and my family.
Time is money and money buys you time. -Rich Uncle EL
Comment when you want to retire and how you see the time going by faster and faster every year?