Feeling Behind in your Finances? Take these 3 Steps to Get Ahead.

Someone commented on a MogulGrind IG post recently that “they can’t get ahead in life because it takes money to make money…” She was half right. It does take money to make money, yes. That will not stop you from getting ahead if you have the right mindset and relationship with money.

1. Invest in your skillset. You’ll need to sharpen your skills so you can command a higher salary in the job market.

2. Lower your cost. Realize you don’t need the latest high fashion, luxury car… I call it “stepping out of the Matrix… there’s a sophisticated system designed to make you feel inadequate if you don’t spend on the latest product/service/destination… If you want to get ahead it’s imperative for you to snap out of it. Find ways to cut expenses.

Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn't … pays it.. - Albert Einstein

3. Invest in the stock market. You can start investing with as little as $5. The sooner you start investing the more time your money has to compound. Compound interest grows your wealth over time. The key is to invest early and often. You won’t get rich quick but consistently investing over years will be life changing, trust me. You’ll be tempted to get out of the market when the market dips, but don’t be daunted. Stay the course if you’re in quality equities like an S&P 500 Index fund.

It’s not what you make, it’s how much you keep.

I’ve seen firsthand people who’ve generated millions of dollars in their career yet still have a negative net worth. On the other hand I’ve also seen people making $40k/year, live off of $30k and invest the remaining $10k per year. Over a 25 year period that amounts to over $1.1m at a 10% compounding rate. During that time you would have put in a total of $250k, yet have $1.1m. If you want to accelerate that pace then increase the amount you invest, the more invested the greater the growth. If you’re making 6 figures and spending on the latest cars, jewelry, fashion, luxury vacations, etc.. living above your means & financing your lifestyle via credit cards, you are likely still broke.

I’ve been there, running on the treadmill, trying to get ahead but seemingly sliding further and further backwards. I’ve been privileged to be around some very successful people and had the opportunity to study some of their playbook. I’ve also read a ton on the subject and learned through personal trial and error as well as observation of other’s mistakes. I cracked the code. The MogulGrind path requires a mindset change (paradigm shift), stop sweating the home-run when base-hits can be just as effective in helping you win the championship. Investing early and often in the stock market and keeping expenses low, while building up your asset column is the key. The asset column will then fund your “fun.”

Each one teach one. If you’ve learned anything here or gained a little bit of inspiration, share this post with a friend. Let’s bridge the wealth gap.

One!

Money Mar

The First $100K is a B*tch, but you Gotta do It!

The legendary multibillionaire investor and Vice Chairman of Berkshire Hathaway, also the right hand man of the “Oracle of Omaha” (arguably the world’s greatest investor Warren Buffett), Mr. Charlie Munger is quoted as saying:

“The first $100,000 is a b*tch, but you gotta do it. I don’t care what you have to do—if it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000. After that, you can ease off the gas a little bit.” - Charlie Munger

• Once you cross the $100k threshold your money, with the help of compound interest begins to work extra hard on your behalf. For example, if you save $10k per year at an interest rate of 7% it will take you approximately 7-8 years to save $100k.

• At that same savings rate and doing nothing different you’ll reach your next $100k approximately 3 years sooner (5.1 years).

• Guess what… it takes even less time to reach your next $100k after that, just 3.78 years and so on and so forth.

If you want to accelerate this growth, simply increase the amount you contribute to the principal each year.

Spread the word and as always… invest early and often. Compound interest and time are your friends.

Money Mar

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