Are you like me, constantly thinking of ways to generate cash inflow?
I have a couple of ideas why young people tend to be so money hungry.
- Being younger usually makes you more ambitious and less jaded towards the world.
Anything is possible. Maybe you will start a business and strike it rich, who knows. When you are young you also aren’t thinking about responsibilities like children and health insurance (most likely), you are uninhibited in a big world of possibilities. I am confident that this thought process fades with time and added responsibility.
- Get a little money while your young and become rich later.
The power of compounding is a an amazing thing. I myself am confident I can get double digit returns on stocks and options most years, but what’s 20% of $6,000? Starting with a big number allows you to grow exponentially.If you earn 10% for 20 years on $6,000 you will have $40,364 – but if you would have started with $15,000 that first year – it would have been $100,912 after those 20 years.
- When you have very little money, a little more seems like a lot.
Last year I did a lot of amazon/eBay selling that probably is going to net out to be about $500 a month before taxes, and I only sold “hardcore” for about 4 months of the year! Here is the thing though, that is $500 on top of my normal salary. If you make $2000 a month and $1500 of it goes towards living expenses, you have $500 of discretionary spending – so getting an extra $500 effectively doubles your discretionary spending/investing.
So what is the post of this article? I am here to say to you – Don’t stop fighting. Keep trying. Never stop. If you failed before – keeping trying.
Getting an extra $5,000 a year even for a few years can drastically change your 10-year picture if you properly invest it. Think about how much different the world would look with an extra $25k+ in cash?
One step at a time. Take a poke around the blog and you might be inspired for your next business venture.