“Die Rich By Living Poor Or Die Poor ByLiving Rich”
A remarkable story of a gentleman who passed away in March at the age of 92, with an estate worth nearly $8 million, stunned his friends and everyone who knew him. The gentleman had amassed a small fortune during his lifetime by investing in quality companies and living an extremely frugal lifestyle. What was truly amazing was the fact that he earned a minimal salary during his entire career, working as a maintenance worker, janitor, and gas station attendant.
The question many had was, what if he had spent some of his money and enjoyed it during his lifetime, rather than saving it and leaving nearly all of it unspent.
The challenge for many individuals is the task of being both an investor and a saver, where a delicate balance of the two lies in careful planning and goal setting.
For many, identifying short-term and long-term objectives are simple and straightforward. Such objectives include saving for college, retirement, and buying a house, each with specific timelines attached. But for others, goals can be difficult to establish, with uncertain marital issues, kids that may or not go to college, loss of a job, and ill health.
The two variables of how much one saves, and how well (or not) one invests can determine the outcome of one’s remaining years. So the importance of having objectives and maintaining a careful oversight of how much to save and tracking investments is critical to knowing where you’ll end up.