By Fitz | Ready To Be Rich – Mon, 17 Febuary 2014
Imagine that you have a magical money jar.
It’s magical because each day, money appears inside it.
More specifically, P1,000 worth of coins appear inside the money jar every 24 hours.
Yes, that’s P1,000 passive income every single day.
Wouldn’t it be great to have this kind of money jar at home?
I’m sure it is!
Now pause for a moment and ask yourself what you would do if you had this magical money jar.
Are you going to buy yourself a new smartphone? New clothes? A new bag? New shoes?
Or perhaps, you’ll use the money to travel? To eat in expensive restaurants?
Maybe, you’ve considered quitting your job, and just live off that P1,000 a day income?
I’m sure you’ve said, “Yes” to one or two of these suggestions and there’s nothing wrong with saying so. After all, it is possible given that you’re getting P30,000 a month for free.
But now imagine this…
Can you wait for 3 years and leave the money there, so you can have P1,095,000 later?
Can you wait for 10 years and not touch the money until you have P3,650,000?
What about not spending a single centavo in it for 20 years, so you can have P7,300,000?
Most of you would say “No”, because it’s hard to imagine waiting that long to reach those numbers, and the temptation to spend the money would grow stronger every day.
So how do you prevent yourself from spending the money inside the magical jar for that long?
The answer is to put a specific goal into the amount.
The reason why most of you said “Yes” in the first part is because I suggested specific things you can do with the money in the short term – buy a new smartphone, travel, etc.
But in the second part, you probably said “No” because I only gave you numbers – the total money you’ll get after years of waiting.
So let me rephrase the latter questions and see if your answers would change…
Can you wait for 3 years and leave the money there, so you can buy a new car?
Can you wait for 10 years and not touch the money until you have enough to send all your children to college?
What about not spending a single centavo in it for 20 years, so you can have additional funds for your retirement?
Saying “Yes” to these questions are easier because you now have concrete goals attached to them.
A lot of people don’t have the patience to stay invested for many years, because every time they look at the value of their investment, all they see is the number…
“Wow, my stock market portfolio has grown 300% already and is now worth P1 million!”
And then they begin to imagine all the things they could buy now if they sell their stock market shares.
But if they had a specific goal, the commitment becomes stronger.
“My stock market portfolio is now worth P1 million. I need P3 million to buy my dream house, so I won’t sell my shares yet. Perhaps, I could add more to it, so it’ll grow faster.”
A person’s mindset changes when they’re investing for a specific goal.
And that’s the secret to becoming a successful long-term investor, the one step you need to take to ensure that you’ll stay invested for many years.
Define your objective and attach it to the investment.