My ten day investing brain dump will recommence in a few days.

I occasionally wonder why more people aren’t wealthy or at least heading there. For anyone or any family on above average income it is easy to get rich. If my basic understanding of statistics is correct that’s 50% of people who should retire wealthy and should retire early!

When I go into a large bookstore I see hundreds if not thousands of books all dedicated to helping people become wealthy. There is clearly no mystery surrounding how to become wealthy and yet despite buying lottery tickets week in week out most people can’t be genuinely interested in becoming wealthy. Heck, most people seem to struggle just getting by. Is it lack of interest, is it ignorance, is it laziness?

Wealth is all about time. Time invested and then time to do whatever you want. It’s not about money or things. It is about time and experiences.

Here are some observations from my week.

I attended a superannuation/retirement seminar this week. I arrived at the same time as a late fifties woman. While walking to the elevators she remarked, “you’re too young for this event”. I wish I could interpret that to mean I look younger than my 41 years, but I fear the truth is that she encapsulated the reason why so few people retire wealthy. Most people simply leave it too late. I really wanted say in reply, “no, it is you who is too old”, but instead meekly muttered the truth “you’re never too young”.

You are never too young to start saving and investing for you retirement. I first recall meeting with a financial planner when I was 27. He told me it takes at least 15 years to retire comfortably once you set your mind to it. He was happy to be talking to a youngster and said most of his clients were in their early 50s and would have to save like crazy and hope for good returns in order to retire comfortably. Then and there I decided I would retire at 42.

Earlier this the week I spoke to a friend who commented that there is always something else on the list that they need to buy. I hear that sort of comment a lot. If you want to become wealthy, then first thing you need to do is rip up that list.

My top ten tips for becoming wealthy.

1. Stop wanting. You don’t need that new thing. It won’t make you happy. You can do without it.
2. Start saving money right away. Every day, every week, every month.
3. Make a plan.
4. Don’t worry about a budget and if a financial planner ever suggests a budget then go find a new financial planner, better yet manage your own finances rather than entrust then to a stranger. Budgets are like diets. They deny you of the things you want. I have no idea why people think budgets or diets will work. They don’t. You must associate good things with what you want to achieve. Positive things, which will inspire you. That is why the plan and saving is so important, just as a plan and exercise are if you want to loose weight.
5. Invest the money you save.

Actually that’s it, and as number four is a don’t, it doesn’t really count. So there are my four tips to becoming wealthy.

The following spreadsheet can be used to calculate your path to retirement. You are able to adjust the main inputs to tailor the spreadsheet to your circumstances. The main reason I have included this spreadsheet is to highlight one concept. TIME! It takes around eight years until the yearly income generated from the savings and investments becomes greater than your input. I think this is the major psychological reason why people don’t start saving, they simply can’t think that far ahead and visualise the benefit. The younger you are the harder this is to do.

Start saving and investing now and you may have a chance to retire in 15 years.