We all would like to be rich and wealthy today, now, at this second, but this is not typically how it works. There is a reason why the average retirement age is in the 60s. Building wealth is one of those things, it just takes time. Building wealth does not typically occur overnight. It takes small steps over time, typically a long period of time. I will be blunt here, it typically takes decades.
It Just Takes Time – No Short Cuts
Wealth takes time. This is the truth. There is really no get rich quick schemes. Some get lucky by taking elevated risks, and the rest build wealth over time. Of course, the more risk, the higher the rewards. But with more risks come bankruptcy and depending on the activity, jail. It is a fact, and you may not want to hear this but generally, it just takes time to build wealth. Short cuts may only get you short term gratification, but not a sustainable award that will last in the long run. This has been shown over and over again.
Wealth Calculator
The time it will take to build sustainable wealth can be generalize using a wealth calculator. Select your favorite wealth calculator and see for yourself. Even with a 10 to 15 percent year over year increase in the stock market, which is highly unlikely for a long period of time, if you are starting with nothing and contribute a small portion monthly, it will take you multiple decades to achieve 1 million dollars. This is the simple reality. It is hard to hear, but it is the truth.
We Fail Because It Just Takes Time
The length of time that it takes to build wealth is the reason we all do not achieve our dream. This is the reason so few of us actually achieve the goal of financial independence and true wealth. It just takes time. Many of us are simply not patient enough to diligently save, invest, and live below our means consistently for an extended period of time. If we were able to do this, the rewards at the finish line are truly worth it. Your financial freedom is worth it.
Mortgage As An Example
Another example of our financial reality is a mortgage. Most typical mortgages are 15 or 30 year mortgages. Why is this? The reason is a simple one. To accumulate and pay off the large sums that is typically a mortgage, for example for a home mortgage, takes time. Unless you are coming in with money, it is highly unlikely that you will pay off your mortgage in 5 years. Think about it, in today’s world, it will typically take the average American 5-7 years to pay off a car loan, which costs significantly less than a home.
Do Not Keep Up With The Jones
It is normal to look at what others are doing. It is also ok to wonder if you are being too conservative with your finances, especially when others are purchasing bigger homes or nicer cars. But you do not know how leveraged or over leveraged these individuals are. Further, your situation is different from others. It is important to stay in your lane and maximize your situation. Work on you.
Know that there are no short cuts. To achieve financial independence, it just takes time. Save, invest, and live below your means.
Conclusion
We all would like to be rich and wealthy today, now, at this second, but this is not typically how it works. There is a reason why the average retirement age is in the 60s. Building wealth is one of those things, it just takes time. Building wealth does not typically occur overnight. It takes small steps over time, typically a long period of time. I will be blunt here, it typically takes decades.
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