It’s so obvious.
Anybody can do it.
Why not you?
This is how the conversation starts to sound after you have been investing for some time and doing fairly well with it. Wether we are discussing Real Estate or Business/Equities/Alternatives, once you have a good understanding of what is possible the chess game feels a little more like checkers.
This isn’t magic of any kind, it’s just the compounding effect of learning/doing over a long period of time being realized and internalized ever so slowly.
It’s not magic.
But it’s an intangible that is hard to explain to people, and one of those statements that don’t sound nice when you say it out loud.
Ed Mylett says it in the best way I’ve heard this intangible explained to date by calling it “compounding pounding”. It’s simply put when the sum of positive behaviors come together over a long period of time and in turn produce the desired result.
Ed Mylett’s lake house pictured above, one of my personal life goals is to own something similar.
More specifically, imagine that you did the following and added up what that effort looked like over time.
Read for 20 minutes a day, let’s say it’s just 1.5 pages per minute (of a non-fiction book that adds to your knowledge base).
Workout for an hour per day to keep the body and mind sharp.
Have one networking lunch/coffee/dinner meeting that last’s for an hour with somebody who is at or above the level you aspire to achieve each week.
Buy one rental property/large equity investment/alternative investment every 3 months.
Now imagine you did all of those things for 10 years straight without fail, what do the results look like? It’s simple math, but let’s run through the exercise for fun.
You have now read 109,500 pages of information that will make you smarter/have a more effective/open/communicative mindset.
You have worked out for 3,650 hours in totality.
You have spent 520 hours networking with somebody at or ahead of your current level.
You have made 40 investments that are substantial.
If you made those investments in rental properties that cash flowed just $400 per month on average, your current flow from this single habit is now $16,000 per month. Net worth may vary, but safe to say it’s looking substantial by now.
Read the above and tell me that person isn’t setting themselves up to win at life in a major way? It’s not easy, and if you set down and looked at it like “I’ll do this for 10 years or forget about it entirely” then the task may appear daunting. But these are background habits if you create the discipline. There are 24 hours in a day and I’ll be generous and say you need to sleep 8 of them.
These tasks all together don’t take 2 hours per day on average. That is 2/16ths of your day, 1/8th, or put even more simply 12.5% of the day.
If you can’t dedicate 12.5% of your waking hours to achieving goals I don’t know what to tell you. Maybe it is hopeless if that is the case.
Imagine you are back in school, would 12.5% effort pass those classes? Short of the rare genius student, I’m going to say you needed more effort than that.
Why not give the effort now and change the rest of your life? It’s not as if your habits will change after this decade, but these habits do 100% create the intangible.
Let’s do the math
Calculate your mortgage or work with the compound interest to see what it can do to expedite your wealth building.