The Trick is To Start; Delays Lower the Success Probability
Age is one of the greatest hacks to being rich. It's a simple truth that many people overlook or don't fully understand. The earlier you start saving and investing, the more time your money has to grow. This means that even small contributions made at a young age can lead to substantial wealth in the long run.
But it's not just about saving and investing; it's also about developing a money-smart mindset and good financial habits early on. It's about learning how to budget, manage debt, and make smart financial decisions. All of these things will set you up for financial success in the long run. So if you're looking to hack your way to wealth, start now and start early.
You might be wondering, "But what if I'm not young? Can I still hack my way to wealth?" The answer is yes, but it will require more effort and determination. It's never too late to start making smart financial decisions, but the earlier you start, the easier it will be. So don't let your age keep you from achieving your financial goals. Start early now, and you'll be on your way to wealth.
Consider two individuals, one 13 years and another 33 years. Across their lives, things are different, yet in the long run, finding purpose, establishing a proper routine, and establishing efficiency is essential.
Life of a 13-Year-Old and that of a 33 Year Old
- Finances: At 13, the person may be focused on saving pocket money for small purchases, while at 33, the person may have established a career and be saving for a down payment on a house.
- Life Goals: At 13, the person may be focused on making new friends and enjoying school, while at 33, the person may have established a career, started a family, and been focused on building a comfortable lifestyle for themselves and their loved ones.
- Following Passion: At 13, the person may be exploring different interests and hobbies, while at 33, the person may have a clearer understanding of their passion and be working towards building a career around it.
- Investment: At 13, the person may not have any investments, while at 33, the person may have a diverse portfolio of investments, including stocks, mutual funds, real estate, etc.
- Retirement Planning: At 13, the person may not be thinking about retirement, while at 33, the person may have started planning for retirement and have established a retirement savings plan.
- Career Advancement: At 13, the person may be focused on doing well in school and thinking about what they want to study in college, while at 33, the person may have established a career and be focused on advancing in their field.
- Entrepreneurship: At 13, the person may not have any experience in entrepreneurship, while at 33, the person may have started their own business or been involved in multiple start-ups.
- Networking: At 13, the person may have a small social circle, while at 33, the person may have a well-established professional network.
- Philanthropy: At 13, the person may not be involved in philanthropy, while at 33, the person may be actively involved in giving back to the community through charitable donations and volunteer work.
- Risk-taking: At 13, the person may not have any experience taking risks, while at 33, they may have taken multiple risks in their career and personal life and have learned from them.
For the above persons, life is different. Nonetheless, the actions one takes at each life phase have major implications for their future. And this also extends to wealth creation and the ability to explore life to the fullest.
Time, Age Benefit, Strength While Young, and Wealth Creation
When it comes to building wealth, starting early is key. The earlier you begin, the more time you have to compound your investments and take advantage of compound interest.
Starting early also allows you to make mistakes and learn from them without the pressure of needing immediate results. Additionally, starting early allows you to align your financial goals with your life goals, such as buying a house or starting a family, giving you more time to plan and save for these milestones.
Furthermore, starting early means, you have more time to follow your passions and pursue opportunities that may be less financially viable in the short term but have the potential to pay off in the long run. All in all, starting early on your wealth-building journey is a hack that can pay off in a big way over time.
Another perspective to examine the issue comes from the zeal, determination, and full energy one possesses while young. Starting things at a younger age when one has more energy is beneficial for several reasons. Firstly, young people tend to have more energy and motivation to pursue their goals and dreams, which can lead to greater success and fulfillment.
Likewise, starting early allows for more time to make mistakes, learn from them and make adjustments along the way. This can be especially important when investing, as starting early allows more time for investments to grow and compound.
Furthermore, starting early allows more time to reach financial goals and build a solid financial foundation. Overall, starting early allows for more time to build momentum and make progress toward one's goals and dreams, leading to greater success and fulfillment in the long run.
Progress
Compounding
Network Growth
Continuous Improvement
Time
Life Examples
One example of a young billionaire is Mark Zuckerberg, the co-founder of Facebook. He created the social media platform while still a student at Harvard University and became a billionaire at 23.
Another example is Evan Spiegel, the co-founder of Snapchat. He created the popular social media app while still a student at Stanford University and became a billionaire at 25. These examples show that starting early and following your passion can lead to great success and wealth at a young age.
Bill Gates, the co-founder of Microsoft, is one of the most well-known examples of someone who achieved great success at a young age. He co-founded Microsoft in 1975 at the age of 20, and by the time he was 31, the company had gone public and made him a billionaire. Warren Buffett is another example of someone who achieved great success at a young age. He began investing in the stock market at 11, and by the time he was 30, he was a millionaire. Today, at the age of 90, he is one of the wealthiest people in the world.
Let us look at another perspective of "Age" with an example. Changpeng Zhao is the founder and CEO of Binance, a major cryptocurrency exchange. He founded the company in 2017 at the age of 40 and quickly built it into one of the largest exchanges in the world.
For the finance CEO, the "age" aspect can be viewed as both an early aspect and the CEO's ability to be "early" in an industry that was starting. By setting up Binance to become one of the major cryptocurrency platforms, it has become a major success as one of the industry leaders.
It was about starting early for CZ, taking the Crypto space by surprise.
These examples show that starting early can lead to great success, but it's also important to note that many successful entrepreneurs also start later in life.
Can you be a millionaire and go back to having only thousands? Yes, it is possible; shit happens, people become bankrupt, and markets collapse. However, the probability is less than getting more money or rising the ladder once one is wealthy.
Things mostly work forward, and with time, money attracts more money.
Final Thoughts
I am not saying that starting late is bad. Or it prevents one from being rich, attaining their goals, or impacting the earth. The message is not to delay your dreams or launch that start-up you have been thinking of for days, months, and years.
There is power in momentum, and through trying and setting the plans in motion, there is the ability to understand and learn throughout the process. What counts is that we initiate the process and follow our dreams to the finish line.
As an individual, one can have ideas that have the power to change their life and that of others in society. Nonetheless, executing them means they can truly get to know if the ideas have the envisioned impacts. Hence, instead of taking longer and doubting oneself, the best approach is actively devising measures to help execute the plans.
Have an Idea? Execute it
Want to Save? Start.
Have Dreams of Investing? Make That Move.
Thinking of a Start-Up? Launch It.
Based on the numerous variables that may exist, the only way we get to know if something will be worthwhile lies in starting. Hence, irrespective of the industry; be it business, education, sports or software development, what counts is setting those ideas in motion.
Just Do It; the Nike Mantra says it all.
Start early and watch your wealth grow, delay and watch opportunities pass you by.