Trying to beat time, they become irrational and make unpredictable, impulsive decisions to "get ahead" or hit the proverbial "home run."
Or, worse they pretend they have all the time in world and do nothing with it.
Later they find themselves playing a costly game of catch-up they cannot possibly hope to win without taking huge risks.
Unfortunately, that's exactly where many investors find themselves today. They are sitting on the sidelines faced with the daunting task of making up the time they'll never get back.
As a seasoned investor, I prefer to think of time as a constant companion-- one that is willing to work with me every day if I harness it properly.
Rather than trying to cheat it, I work with it so that I tip the scales in my favor. This ensures that time becomes my ally rather than my enemy.
It's What You Don't Know About Time That Kills Your ReturnsLet me illustrate.
Which action do you think will earn you more money over the next 20 years?
- Investing $12,000 in a single lump sum today; or
- Investing a total of $24,000 in increments of $100 a month?
And for one highly logical reason - you would be investing two-times more principal.
The truth, though, is that putting away $12,000 right now is actually the more profitable choice.
We have been conditioned to put a little away each month on the assumption that this will add up over time. But that's only half the story.