Imagine there exists a little machine you can purchase that costs $100. This machine prints out $8 per year each and every year. You can buy more machines growing your yearly print out of money, or simply enjoy the $8 a year. After a few years you could sell your machines if you are in need of some money or hold onto them for decades enjoying the cash production of your money printing machines. When you decide to sell the machines the price might have risen giving you $140 for the little machine you once paid $100 netting you an extra $40. Would you go to the store to purchase one of these machines and watch as it slowly prints out money?
Now imagine there are other machines you can buy that don’t print any money at all, but are highly coveted due to their limited supply. These machines are purchased just for their gained value overtime going from $100 a machine to $150 in a few years. This is quite similar to those that purchase valuable trading cards or gold hoping they go up in value over time.
Say you don’t have $100 well luckily enough there are machines that go for any price you are willing to pay. $1 machine that prints out 8 cents a year or $1000 machine that prints $80 a year. How many little machines would you want to buy? None? 10? Or maybe just buy one each month to grow your collection?
End Game
Those that just continually buy little machines with some of their extra money eventually will find that their machines will produce more and more money eventually outpacing their own professional income. It's at this point one may choose to stop working altogether and just live off of their printed money from their little machines. Plus when they retire they can simply begin selling off the machines for extra money to maintain their lifestyle as they have less need for the little machines as they get older.
Real Life Little Machines
Now these machines exist in real life. They are called investments and they take the form of stocks, bonds, mutual funds, and ETFs. Some give out dividends (payment or share of the companies profits) others just simply go up or down depending on demand. They can be bought and sold with a few taps of your thumb. They are not just for the financially well off or those in the financial field. Investments are for everyone, rich or poor.
Investments are critical to building real wealth. It's nearly impossible for most people to become financially independent without investing in their future. Start small even with a few dollars. Automate your investing by setting up auto deposits to pull funds at set times throughout the year. Watching it build and grow overtime can be rewarding. Sacrificing $100 on a "Little Machine" today, so that you can have $300 later in life might seem not worth it, but your future self with thank you. You may think you will never be old or that retirement is so far away, but time marches forward whether we like it or not and there is nothing we can do to stop it. Investing for longer is easier than investing more at a later time so you can benefit from compounding interest. So, start today and buy a "Little Machine that Prints Money"
Apps like WealthSimple and Questrade make investing simple and accessible to even the most beginner investors. They make buying Little Machines that Print Money (investing) easy and enjoyable. Ask me how.
If you found this helpful and would like help budgeting or investing please email me at TaylorMckeeCoaching@gmail.com
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