The tortoise won the race over the hare because it was consistent. Many people often ignore the power of consistency but those who follow, see remarkable success in life.
People want to get rich quickly. The media also highlights the story of sudden riches, flamboyance & extravagant splurges.
Whereas for a common person, the chances of success are much higher if only they are going through a boring everyday grind, silently climbing up the ladder, consistently saving and investing to benefit from the power of compounding in the long term.
We recently onboarded a client with total assets of INR 35 Crore. A solopreneur, humble, down-to-earth, and wise person. Despite many ups & downs in business, he created enough assets for a comfortable retirement. Nothing bequeathed to him by his parents. His mantra of success – be frugal & consistent.
The single biggest factor for the growth of his wealth was this – with the rise in income, he focused on increasing his savings more than his lifestyle expenses. He worked consistently, saved consistently, and invested consistently. Simple approach, yet so powerful in the long term.
Most of the people significantly upgrade their lifestyle with the rise in income. This makes them slaves to the current lifestyle and they would not want to downgrade from a set standard. The elevated expenses keep rising with inflation but income is never guaranteed. This creates a significant risk to finances. In the unfortunate event of a setback to income (many examples during the Covid crisis), the expenses eat up the savings. Downgrading from a set lifestyle is extremely difficult. Whereas not adopting a higher lifestyle is easier. This approach brings resilience to face any kind of situation without much stress. Additionally, you end up saving more to achieve your financial freedom corpus sooner rather than later or never.
Instead of just focusing on returns on your investments, you should focus on building wealth by saving more year after year. Doing later is more important than the former. If you can do both, nothing can stop you from achieving your financial goals comfortably.
Originally posted on LinkedIn: www.linkedin.com/sumitduseja
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