Here's another post in our series on the learnings from the book The Millionaire Next Door. A quote from page 96:
Planning is typically found to be a strong habit among people who have demonstrated propensity to accumulate wealth. Planning and wealth accumulation are significant correlates even among investors with modest incomes.
You have to take some time to plan your investments or you can't expect them to give you a good return. Now before you dismiss this idea because "you just don't have the time," let me say that you don't need that much time. Here are two points that support this assertion:
1. No matter what amount of time is available to plan your investments, you can find a strategy that fits your availability.
2. The difference between people who accumulated wealth and those that didn't is not that great in this area. Wealthy individuals spent an average of 8.4 hours per month planning investments while under accumulators of wealth spent 4.6 hours per month. For an additional one hour per week, you can move from the poor house to the penthouse (or at least head in that direction). May I suggest canceling your cable and spending that time planning your investments and finances instead? It will be a win-win. You'll save on cable bills and get more out of your investments.
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