What’s the Difference

Nathalia Arcuri, Thiago Nigro, Graham Stephan… The YouTubers have millions of subscribers, each! I have less than 100. What’s the difference?

A single word can be used to define the difference. The same word applies to investing in yourself and investing in the stock market. This definitely eliminates persistence and patience.

What do they have that I do not? Why are they exceling? Are they lucky? We can ask many questions, but the questions in this case impede our achieving our goals when viewed from a comparison perspective. I ask these questions of myself, just like you ask similar questions about your situation.

People, to include financial advisors or money managers, talk about interest and long term in a way that is counterproductive. What is the difference between 8% and 9%? Seriously, think about it and tell me your answer. The short answer is 1 year.

Confused, you exclaim, “What!”

Another one of you asks, “What are you talking about?”

A financial advisor may say, “Don’t listen to him. Over the long run this 1% difference can cost people $10,000 dollars or more.”

Knowing the thoughts or objective of the financial advisor, I would kindly ask, “Would you like to explain your response?”

The financial advisor would say if you have $100,000 invested the 1% would be $1000 per year. After 10 years it would be over $10,000 and another 10 years would be $20,000. You would see him smile because he sees you nodding your head in agreement.

Before asking you and the financial advisor a follow-on question, I would like you to consider his or her response and the question about what is the difference/reason that Nathalia Arcuri and others have more followers. The difference is TIME!

They have put in the time to grow their channel. TIME is needed to grow your portfolio, your wealth. What is $1000 after a year of investing? Truthfully, it is not much when compared to $100,000. For a $1000 investment it is $10, which is not enough to buy a cheap dinner or even a coffee for you and one for someone else. $1000 in a year does not even get you a new iPhone. So, yes, it takes TIME!

The financial advisor notices that you and others are starting to want to learn and understand more, so decides to interject, but before comments are presented, I ask, “When is 7% greater than 8%?” I did not want to ask is 7% ever greater than 8% because everyone would say “no”. By asking “when”, I have already informed you that it is possible.

Not knowing the answer and seeing that you are interested in growing your wealth, the financial advisor leaves the room. Each of you are eager to learn. It is not like in school. You are interested and have a strong desire to grow your wealth. You see the need to invest in yourself.

You understand “TIME”. Reluctantly you agree that time is they key. You want instant gratification, but think about how my YouTube channel is non-existent. You take comfort knowing that I am struggling just like you. You are not the only one who has to wait. We see Nathalia, Graham and others as successful. The problem is that we forget they started at the bottom. We forget they already put in the TIME. When we compare, we need to compare the journey. In comparing the moment, we discount the time and effort they put in. This is a disservice to them and to YOU.

Now it is time to explain why the difference between 8% and 9% is one year. Starting with the same $100,000 investment (I know it is a lot money, but you will get there one day), nine years later it will be worth $200,000 based on 8% annual interest. Remember, “TIME”. You can do it! You just need to believe in yourself. If you received 9% interest it would take eight years to reach $200,000.

Are you going to complain either way? Yes, you would like to get there sooner, but there are so many other variables that focusing on interest causes people to lose money, rather than come out ahead. Let’s go one step further. After 16 years you will have $400,000 compared to 18 years. DO NOT FOCUS on the years. FOCUS on the goal. Why do I say this? Have you been investing for 16 years? Focusing on the goal will create the habit to save and invest for life…

An explanation of why 7% is greater than 8% will occur in due time. Currently, I am trying to change your mindset. For example, the first question to ask yourself is can you invest in yourself for many years? If not, then how is the 1% difference $10,000 or more? Or, what is the significance of 1%?

Financial advisors deal with millions of dollars. This way of thinking creates a different mindset. Do you remember when I gave an example of the 1% on a $1000 investment? Imagine you have $1,000,000 invested. At 8% interest you earn $80,000 year. Now that is a good living opportunity without working. Likewise, at 9%, it is $90,000. In this case, 1% is $10,000.

To get to $100,000 takes TIME. To get to $1,000,000 takes time, but with cost saving and investing you can do it.

Giving is one of the best things you can do. I am giving you this information for free. If you would like to help others, leave a comment. Tell others what you learned. The more people give, the closer we become.