There are 3 money skills to master in life, but is learning about money a boring topic to you? You know what’s not boring though? Early retirement – let’s go!
Hey what’s up everyone this is Alan and today we’re going to learn the third and final money skill you have to master of the total three which is Growing money, if you want to retire early.
If you missed it, don’t forget to watch Part 1 and 2, where we dived into mastering Earning and Saving money.
As a reminder, the 3 money mastery skills are: Earning, Saving, and Growing money.
You can be a rockstar in one of those skills, but that would not lead to true early retirement. For example, you can earn a high income, but if you’re horrible at saving or don’t know how to grow your money, then you’re really not maximizing your potential.
So let’s break down Growing your money.
Growing your money is probably the most neglected of the three because it takes effort to self-educate yourself on everything that it has to offer.
However, you would be doing yourself a big disservice if you didn’t spend the time to master Growing your money because it has the highest chance of providing you with a mix of passive and semi-active income that you can ultimately use as a gauge to how early you can actually retire.
I totally get that when you first start your journey on mastering Growing your money, it can be overwhelming, so you don’t even bother starting.
There are just so many ways to grow your money like stocks, crypto, gold, real estate, private investing, and more. And of course within each of those has a bunch of its own segments like options and futures trading, REITs versus residential versus commercial properties, etc etc etc.
What I advise is that you just start by picking one path and use that as your jumping-off point. The journey to mastering Growing your money is a lifelong one, NOT an immediate one.
The beauty is that you don’t even need to learn all the different ways. If you master just ONE, you’re doing pretty well.
What to focus on when growing your money
The main thing to focus on here for Growing your money is…
First, being conscious and aware of the mentality that your money has to be working for YOU.
This means that your extra money shouldn’t just be sitting at a zero-interest rate checking account, but it should be placed into action for growth.
As with anything, any action is better than no action.
Next, it takes time and patience to grow your money, especially when you’re first starting out, but I want to show you why you shouldn’t be discouraged to start.
Let’s say you have $10,000 saved up and you invest it in dividend stocks that yield 5% annually. That means you’ll get $500 per year or $42 per month.
I know, it’s not much and it certainly doesn’t feel like an incentive to put that $10,000 away when you can just have more fun in life with that extra little bit per month.
But let’s say you keep squirreling away $10,000 here and there, like twice per year. Over a longer time period in combination with the power of compounding, that becomes almost $1 million in 25 years.
Now suddenly that 5% dividend yield looks pretty good because you’ll get $50,000 per year as completely passive income.
And that example alone just covers dividend stocks. Once you start to self-educate yourself on everything regarding Growing money, then you can branch out to so many different things to diversify how your money is working for you.
So, where do you start?
At this point, you may be clear on WHY it is important to master Growing money, but you don’t know where to start still.
No worries, the absolute easiest way to start is with something called dollar-cost averaging stocks and I made a video all about it if you want to watch – just click up there.
Like I mentioned before, the best thing you can do to start your lifelong journey to mastering Growing money is by simply choosing ONE path to start. There’s a good chance that the initial start will hook you into other avenues, but don’t get yourself overwhelmed and just start with the easiest which is dollar-cost averaging stocks.
I want you to start seeing your money as an asset for growth, not a liability where you just spend it on things that don’t provide value back for your future.
If you see it that way, then mastering the Growing money part will become your best friend because you can comfortably retire when your money growth can predictably sustain your cost of living.
When that happens, you are essentially retired.
If you missed the first parts of this money mastery series, then check out part 1, Earning Money and part 2, Save Money.
And if you enjoyed this, I invite you to smash the Like and Subscribe button below with the notifications turned on.
This is Alan signing off and here’s to you investing in your knowledge and future in the Freedom of Choice lifestyle – I’ll see you soon.