Time and Money – it can be your best friend

February 18, 2008

Obstacles by renoir_girlI was asked to write a guest post for fivecentnickel.com that will be posted while nickel is on vacation. I decided to base my post on the timeless advice of Warren Buffett and some of his most notable quotes. As I was researching the post I could not help but notice a trend in Buffett’s quotes: growing money takes time and patience.

Most will say they are patient, but with the wild swings of the financial markets and the emotional reactions it is easy to see that most of us are letting this advice fall on deaf ears. Truth is that many enjoy the rewards of investing, but become very unsettled when the market becomes volatile.

On today’s show I provide a few of Warren Buffett’s quotes that focus on the value of long-term investing and patience. Remember time is your friend when it comes to making it through uncertain markets.


Here is an example of a Warren Buffett quote that I use in today’s show, “Someone’s sitting in the shade today because someone planted a tree a long time ago.”. What a visual that quote generates! That quote is a perfect representation of what your mindset has to be in order to generate true financial independence.

A few key stats that I reference in today’s show:

Assuming a 10% rate of return you would need to save the following amounts monthly to accumulate $1,000,000 by Age 65…..

  • 1 Year Old = $14 month for 64 years
  • 10 Year Old = $35 month for 55 years
  • 20 Year Old = $95 month for 45 years
  • 30 Year Old = $263 month for 35 years
  • 40 Year Old = $754 month for 25 years
  • 50 Year Old = $2,413 month for 15 years

The Advantage of Starting Early:

Two friends graduate from college together. One decides that they will start saving immediately, but for only 9 years. The other friend decides that they are going to live for the day and put off saving for 9 years, but once they start they are going to be consistent until the day they retire (35 years). So who will have more money at retirement the friend that invest $18,000 right out of college or the consistent but delayed friend that invests $70,000?

Assuming a 9% rate of return you are going to be shocked by the results…. (listen to the show for the results!)

A Discussion on Unsuitable Insurance:

I close out the show by discussing a phone call I received a few weeks ago from someone who had been sold a bad insurance product that did not fit their financial needs or goals. Please do not think that I am picking on insurance companies because one look at my personal financial profile and you will quickly realize that I use quite a bit of insurance to protect my family. There are plenty of good insurance agents, but there are also those that do not try to understand the needs of their prospects because it is all about the transaction. Listen to the situation that I describe in today’s show, and hopefully you can learn how to spot a good agent from a bad agent. For all of my good insurance agent listeners … I know how this story makes you feel. Believe me there are plenty of bad financial planners out there as well, and because of the bad apples it takes a lot longer to build trust with clients.

Most Recent Episodes

Can Money Buy Happiness? (Here’s the Truth)

Money and happiness aren’t directly correlated, but they are intertwined. Some believe that once they have a large, pie-in-the-sky amount of money, they will finally be happy. Others are working towards a more specific retirement number they hope will bring happiness....

Passive Income EXPOSED: 3 Ways to Actually Make Money (2022 Edition)

Passive income is a dream for many looking to get out of their 9-5 or just create extra income on the side. In this episode, we’ll break down different ways to actually earn passive income in 2022. In this episode, you'll learn: The easiest and hardest side hustles...

Millionaires Share Their Secrets to Financial Success! (2022 Edition)

It’s that time of year again: our annual Money Guy Wealth Survey episode. We’re back with all-new data for 2022, including new questions. You’ll learn who millionaires are, what they did to get there, and how they built their wealth. In this episode, you'll learn: The...

Dumb Financial Decisions That Americans Make! (Do You?)

Throughout our years of doing the show, we’ve seen more than our share of financial mistakes. Some are more common than others - in this episode, we’ll discuss some of the dumb financial decisions Americans make - and what you can do differently. In this episode,...

3 Things You SHOULD Spend Money On (Even During a Recession)

When is it okay to start spending money on things you want, but may not need? In this episode, we'll discuss when you can start spending money on "unnecessary" purchases, and what goods, services, and experiences are worth spending money on. In this episode, you'll...

3 WORST Types of Financial Crooks (Don’t Get Scammed!)

In the financial world, there are a lot of crooks that try to get into your pockets. From metaphorical crooks selling a bad product to literal crooks stealing your money, we'll cover the different types of financial crooks to watch out for and how you can protect...

Financial Advisors React to NFL Players Spending Their First Million!

Not many Americans will ever make over one million dollars in a year, but professional athletes regularly make that and more. In this react video, we'll see how NFL players spent their first million dollars after making it into the league. As we review their mistakes...

Everything You Need to Know About Real Estate Investing!

Over the years, we have had some great conversations about real estate investing. In this episode, we put together the ultimate guide to show you everything you need to know about real estate investing! In this episode, you'll learn: How to get started in real estate...

The Truth About The FIRE Movement! (Is FIRE Still Possible?)

Since the advent of the FIRE movement several decades ago, we have never experienced a period of higher inflation until now. With the market down over 20% and inflation at 40-year highs, is FIRE still possible in 2022? If it is, what does it take to become financially...