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Here's a Fun Bet You Can Make This Weekend
Here's a Fun Bet You Can Make This Weekend
Here's a fun question to ask someone this weekend'
What would you rather have? $1 million right now or just one penny that doubles in value every day for a month?
Which would you choose?
Now most people will think this is a trick question and start doing the math on a penny doubling in value ' 2 cents, 4 cents, 8 cents, 16 cents, 32 cents, 64 cents ' they may even get as far as $40.96 by the 13th day and start losing their patience assuming that there's no way they'll be able to earn close to $1 million after 30 days from investing just one penny.
In fact, you can even sweeten the deal and offer to give them the money after 30 days because they'll never guess it!
Want the answer? Take the penny!!
Get this. After earning compound interest over 30 days you'll earn $5,368,709.12!!
Many of us have the opportunity to do this in real-life every day, but few of us have the self-discipline or patience to stick with it. But simply by focusing on one thing and investing in it wisely we can yield tremendous returns.
Now, our money may not double every day (especially in today's market) but over time small investments can turn into HUGE gains.
Enrique Alvarez saved $5 a day for 50 years, which adds up $91,250. That a nice nest egg, but by maximizing his investment power and leveraging the interest he could earn, he ended up with $793,872.82.
There's an extraordinary example of someone who was able to put the power of self-discipline to work for him that John McCormack talks about in his book, Chicken Soup for the Soul.
A man by the name of Le Van Vu, and his wife, came to America in 1972, from Vietnam. They arrived in Houston, without any money and they didn't speak a word of English. The Vus came to live with their extended family, who had a bakery in the Greenspoint Mall in Houston.
Le's cousin gave them both jobs in the bakery, but they didn't earn much money. At first, Le and his wife slept on mats in the back of the store and learned English from audio tapes. Between the two of them, they only made $15,600 a year.
Eventually, his cousin offered to sell them the bakery when they could come up with the $30,000 cash down payment. He would sign a note for the additional $90,000 to be paid off in credit when they could afford it. In order to do this, they would need to come up with a plan, and they would need a lot of discipline for it to work. The Vus thought it over and decided that they could and would do it by saving all the money they earned at the bakery and spending on almost nothing else. They only had a weekly income of $300 and they decided to save the vast majority of it for the purchase of the bakery.
Over the next two years, despite earning a steady, albeit meager income, they continued sleeping in the back room of the bakery. They lived on a total of just $1,200 over two years and saved a total of $30,000.
If you were impressed so far, hold on because the story becomes even more impressive.
After Le and his wife saved the $30,000, and bought the bakery, they had another serious conversation. They determined that if they would sleep in the back room for just one more year, they'd be able to pay off the additional $90,000 they owed, and have the bakery free and clear. And, sure enough, saving virtually every penny of profit that they made that year, they paid off the $90,000 note.
In just three years, they now owned a profitable business without any debt.
Then, and only then, did Le ease up on himself and they actually got their first apartment. But, for people like the Vus this didn't change their level of discipline. They continue to save on a regular basis and they live on an extremely small percentage of their income.
Do you think that Le Van Vu is a millionaire today? He certainly is. This is an amazing story of the power of discipline and habit building demonstrated when harnessed in full.
Here's another question to ask yourself:
'Can I be disciplined enough and set habits in place to accomplish my goals, to keep myself back from indulging in pleasures today, so that I can reap the rewards tomorrow?'
Always taking you from where you are to where you want to go,