Do you have to be a Genius to Get Rich?

wonder.jpgSeriously you dont…

I advise people on personal finance including banking, budgeting, saving, and investing. How to save your money-tricks, how to budget, and using credit cards, etc. How to make more money by investing? What are stocks? Bonds? Mutual funds? What can you do to start today and maximize returns?

All you need is three ingredients, income, discipline and time. Chances are, you already have two of them, income and time. All you need to do is add the third, discipline.

There’s a saying in economics “expenses rise to meet income”. This means money that’s easily available to you is certain to be spent. That’s why most people’s paychecks disappear before their next payday. They get used to having a certain amount to spend, and habitually run down their bank account.

Here’s how it works: Say you start with nothing, invest $500 (of your income) a month (a healthy discipline), and let your money ride (over time) in diversified investments. Long term, the stock market returns at least 10% annually. Assuming a 10% return, you’d have $102,000 after 10 years, $380,000 after 20 years, and $1.1 million in 30 years.


It REALLY pays to start now. Check this: if you save 100 bucks/month until you’re 30 (for only 10 years, then you never save money again), and your dumb friend starts later–saving 100 bucks/month from age 30 to 65 (that’s 35 years compared to your 10 years)–you will have way more money (over $100,000 more) than him at age 65. Start early and you will be rich.

Here’s the bottom line, like it or not: The fate of your retirement, your comfort in older age, probably lies in your commitment to the concepts laid out above.

It’s not easy. But it’s very, very simple.

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12 Responses

  1. Robin Bal says:

    Thanks mate,

    Take care and cheers

  2. scott morris says:

    That’s awesome Robin. What should a 40 year old do starting from scratch?

  3. Robin Bal says:

    Hi Scott,

    Thanks for your comment and welcome to FortuneWatch. Too little information to offer advice mate, however getting rid of debt and saving for your retirement could be a great idea. Assuming you wish to retire at 60 and life expectancy going to 80, you have 20 years to save up to generate retirement income for 20 years. Does that make sense?

    Take care and cheers.

  4. Tony says:

    Good information. Made me think.

    I just turned 24 years old last week and I have little debt (less than $2000, which will be paid within the next 6 months).

    Recently I opened up a regular savings account which I was putting aside $55 weekly. I’m up to a little over $1000. As of reading this I’m setting aside $100 a week from now on (I just set it up actually).

    My question is where (what company) should I look to for diversified investments? I’m guessing we’re talking about mutual fund? I’m pretty new at this so any input would be helpful!

    By the way, I’m in the U.S.A. if that’s of any help.

    Great blog! 🙂

  5. Hi Robin,

    Good illustration. Most people in their 20s tend to spent more then save and when they save, they forget to invest. I know because I was one of them once upon a time.

    Saving for retirement isn’t difficult, it just takes discipline. 🙂

    Keep up the great work!


  6. Robin Bal says:

    Hi Tony,

    Thanks for your comment and welcome to FortuneWatch. Good to know that my post prompted you to start saving more, I’m happy to hear that.

    It is very difficult to give advice on which fund you should invest in as I am not located in USA. I think it would be a good idea to start putting aside your saving into a diversified and balanced portfolio with a long term perspective, rather than in one fund. Most life offices offer such investment instruments. The best thing to do is look around, gather information, study it and then decide.

    I hope this helped. Take care and cheers.

  7. Robin Bal says:

    Hey James,

    How’s it going mate? Oh yeah I have been one of them too when I was in my 20’s. All it requires is a bit of discipline, savings is an interesting habit, as you see your saving grow you get self motivated to save more.

    Take care and cheers

  8. emil says:

    unfortunately..i want to have more money in a year or two…not in twenty years 😀 Yep..your solution could works for those who want to have a more secure future…but maybe tomorrow or maybe next year i’ll be dead !

  9. Tony says:

    Thanks Robin.

    I will take a look around. But just to make sure I’m looking in the right area, we are talking about mutual funds correct? That’s what I understand by “diversified investments” I am assuming a diversified/balanced portfolio in stocks.

    I know a LITTLE about stocks since I was into it about two years ago. But I’d rather trust all that decision making to an actual company.

    So to confirm, mutual funds? Thanks again and sorry for the “newbie” questions!

  10. Robin Bal says:

    Hi Tony,

    Good to know that you know a little about stocks. Yes I meant mutual funds however I also meant to look for an investment instrument which allows you to invest in a few funds at the same time under one account. You invest an X amount each month into one account and the same gets split into a few funds. In the end what you have a is a diversified portfolio. Hope this helps. You can email me on for more information.

    Take care and cheers 🙂

  11. That’s it. Never spent more than you earn. Turn the money over and over again. I one point, you will realize, you are rich.

  12. Realizedecide says:

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