THE POWER OF NOW IN INVESTING

We all know that old saying: "Being poor is having too much month at the end of your money." How is it that some people always have the money to meet their financial obligations (and then some!), while some of us are always struggling to get through those last two weeks of the month?

"I am an honest, hard-working, and competent person, why do I continue to perform so poorly in the financial markets?"

"I should have invested years ago, why did I wait?"

"I have missed all the upside."

"Now, I will never be able to retire."

No One Can Predict the Future - So Stop Wasting Time and Energy on It.

You are in the here and now, while your mind is in the future. This creates an anxiety gap. You don’t need fear to invest avoid unnecessary danger, just a minimum of intelligence and common sense.”

Don’t underestimate the time value of money

Perhaps the most fundamental concept of the modern financial system, "time value" is not just a concept for investment bankers and finance gurus. Essentially, time value means that ever $1 you have today is worth more than $1 you will have in the future.

Why is that? Because any amount of money you have today can be invested to earn interest or profit; the longer this amount contributes to an investment, the more money it will earn. Understanding the time value of money will allow you to maximize your income in the long run. At a 10% rate of interest, if you save $100 today, you will have $259 in the next 10 years.

Decisions Made Today Can Eliminate Regret Tomorrow

We cannot go back in time, nor can we change the decisions we made in the past. Therefore, if things have not gone well for you recently, you have to shift your focus to "what can I do right now to avoid feeling this way in the future?" A good first step is to focus more of your brain power on the Now, and less on regret and fear. A logical next step is to determine how you plan to focus on the present.

It’s important to start saving early

Going from $100 to $259 in 10 years does not seem that great a difference, and indeed, with small numbers and small time periods, the time value of money is not all that impressive. But the larger both the amount and the time period, the larger the amount you’ll earn without lifting a finger.

You can start small –

You don’t need a lot of money to start investing; in fact, it makes sense to start small. This way you can start sooner, rather than waiting until you have saved up a large amount, which could take years. It also means you can learn about investing without taking risks on large sums. If you don't invest, you are missing out on opportunities to increase your financial worth.

It is better to live at present, to enjoy and focus on the now, to be mindful of things. Life is Now, If not now, when? Don’t keep your unhappiness alive by giving it time.