Freedombyfi

Repeat after me: Transferring money to my investment account is not investing❌

Are you confused? Let us clarify!👇

Putting money into your account doesn’t mean that you’ve invested it, it’s only the first step to investing!

Step 2️⃣ is to actually buy investments with the funds that you’ve put into your account. This is crucial if you want your money to grow.

We recently found out about a family member who put away $1,000 into an IRA 35 years ago. They made the common mistake of putting money into the account, but not investing it into any funds. At this point, the retirement account was essentially acting as a savings account. Since the money wasn’t invested, it was simply sitting there collecting 0% interest.

Today, there’s still $1,000 sitting in their IRA, and not a penny more 😶

Had this family member used these funds to purchase specific investments within the investment account, such as an S&P 500 index fund, their money would have grown exponentially due to compound interest.

📈 Based on a return of 10.82% (which was the return rate of the S&P 500 over the last 35 years), that $1,000 would have turned into $36,445... without investing another cent!

Now imagine if they kept investing an additional $1,000 each year. They’d now have a balance of over $360,000!🚀

This is all due to the magic of compound interest, which is when the interest you earn on the balance of an investment is reinvested, earning you more interest.

⏱ As you can see from these examples, time is compound interest’s best friend. The more time your investments have to grow, the bigger the return.

This is why it’s so important to make sure that you’re investing early and often, and that you’re actually completing step 2️⃣ of the process by iinvesting the money that you contribute to your investment accounts (instead of letting it sit there over time).

This is your reminder to check on your investment accounts and make sure your money is being put to work!

📩 Share this post with a friend to make sure their money is working for them, too!

How much money would you want to earn by doing nothing?👇

Option A) $530
Option B) $4,768
Option C) $677,561

I think we all know which option we’d choose!

We’re not saying it’s impossible to amass a great amount of money in a savings account. With a traditional savings account, the $25,000 deposit and no additional contributions would only take 5,561 years to reach a return of $702,561. Don’t have that kind of time? The other option would be to contribute an additional ~$19,000 every year during that 35 year period. But with all of life’s other expenses it’s probably difficult to come up with that kind of cash every year..

So maybe the savings account isn’t the best way to build wealth 🤔

By investing the initial deposit of $25,000 (instead of saving) and not adding a penny more in contributions, after 35 years your money will grow to $702,561 (assuming a 10% return). Not too shabby, huh?

🕑 When you invest, your money will work for you around the clock so that one day you don’t have to exchange your time for money. Every time you invest, you’re buying more freedom for your future self. Once you have enough investments to cover your living expenses, work can be optional and you’ll have the freedom to spend your time doing what you actually want.

🌟 It’s important to recognize that savings accounts are still necessary to have, but they are not the best method to use when trying to grow your money. Savings accounts are for holding your money so that it’s readily available for short-term use and investing is for growing your money over the long-term.

Here’s what a savings account should be used for:
✅ Emergency fund of 3-6 months of living expenses
✅ Savings goals or sinking funds for planned upcoming expenses (paying off debt, down payment on a home, vacation, wedding, holiday shopping, etc.)

Any excess funds you have should be put to work by investing. Investing is how you GROW your money and build wealth for your future self!

💬 What’s your favorite way to invest for your future?👇

If you’re thinking “how the HELL am I going to find an extra 2 hours in my day?!” then keep reading👇🏼

On average, Americans spend just over 3 hours each day watching TV and another 3.5 hours each day on social media. That totals to about 6.5 hours each day and accounts for just over 40% of time in the day that you would spend awake (assuming you get 8 hours of sleep each night).

Basically, 40% of the average American’s waking hours are spent watching TV and on social media. Is that alarming to you?

Doing average things translates to achieving average results. If average is what you’re going for, then to each their own. However, if you want more out of life - let’s say time freedom, location freedom, or being work-optional - then you’re going to need to do more!

Personally, we don’t strive for average. The average American retires at 62. A study by Fidelity also shows that the average 60-69 year old in America has $229,000 saved for retirement. Not sure about you, but we DO NOT want to settle for that. That’s why we form habits, complete tasks, and set goals for ourselves that are uncommon among the typical American.

Here’s how to free up your time to achieve your goals so that you can be above average:
Step 1️⃣: Identify habits that are taking away from your productivity
Step 2️⃣: Replace these habits with ones that are more conducive to your goals
Step 3️⃣: Write out a schedule and block out specific times for self-improving activities

Two hours per day may seem impossible, but after you review how you spend your time on a typical day, you’re bound to identify areas for improvement. For example, if you watch 2-3 episodes of Nextflix each night, cut back and only watch one. Use that time saved to read a book, research a potential investment or business opportunity, or build your skillset.

“If you make daily progress and continually improve, you will lead a happier, healthier, more productive, and wealthier life.” -Set for Life

Stop wasting time settling for ordinary. Start taking action and see for yourself how extraordinary your results can be!

📩 DM us the word “mindset” for 25% off of our Rich Mentality, Rich Reality ebook📚