We have a question from “Buckeye Fan 14”, he says he is 26 years old and is investing 40% of their gross income for the first time this year. They keep checking their accounts and seeing their money go down, making them wonder how they can stay motivated to continue investing.
Step One: Go to moneyguy.com and download the Wealth Multiplier. The Wealth Multiplier shows the value of every dollar at each age, allowing Buckeye Fan 14 to see the potential of their savings.
Step Two: Take their savings and multiply it by the Wealth Multiplier. This will show Buckeye Fan 14 what their contributions will be worth by the time they reach 65 years old. This alone should motivate them to continue investing.
Now, given the current bear market, Buckeye Fan 14 may be feeling concerned about their investments. I want to remind you that the stock market has always been volatile, but the ever-expanding economy and innovation continues to grow higher.
Time is so important in wealth creation. The longer Buckeye Fan 14 invests, the more they will benefit from compounding growth. The difference between a 20-year-old and a 50-year-old’s investment strategy is their time horizon. Buckeye Fan 14 has the opportunity for exponential growth and they should take advantage of it.
Buckeye Fan 14 should also keep in mind that a bear market is temporary and not reflective of their long-term investments. While it may seem disheartening to see their portfolio decrease in value in the short term, over time, their investments will continue to grow.
In conclusion, Buckeye Fan 14 should stay motivated by focusing on their long-term goals, using tools like the Wealth Multiplier, and understanding the power of time in wealth creation. They should not let short-term market volatility discourage them from reaching their financial goals.