Lost Opportunities. The Cost of Waiting.

The cost of waiting can be steep, often leading to missed opportunities and unfulfilled potential. From delaying financial investments to hesitating on significant life decisions, the consequences of inaction can be substantial.

An Instagram post has gone viral, garnering over 2 million views since being posted a short time ago. The post read, “My goddaughter will have $7.6 Million by the time she is 65.” Her genius plan … start investing immediately.

The woman explained that she would open a custodial brokerage account for the baby when it is born. She will initially fund the account with $1,000 and automate a $100 monthly deposit. She will also contribute $500 annually on her goddaughter’s birthday. The funds will be invested in an S&P 500 tracking ETF, which returns approximately 10% annually.

I haven’t verified the calculations, but she explains that she will stop contributing to the account when the kid turns 18. Given a 10% return, the account will have approximately $86,189 at that time. Using the premise of compounding interest, by the time the person turns 65, she will have $7.6 million in her account.

This is not a new phenomenon, and many financial advisors preach consistent automated investing at an early age. But the premise about the cost of waiting and lost opportunities is very much fundamental – and not just when it comes to investing.

Another area where the cost of waiting can be detrimental is homeownership. Many individuals delay buying a home in the US or Israel due to concerns about market fluctuations or waiting for interest rates to drop. Many don’t consider buying investment properties or participating in real estate opportunities because “it’s too late.”

Waiting for the perfect timing often results in missed opportunities and lost real estate advantages. These benefits include building equity through mortgage payments, saving on rent expenses, and capitalizing on historically appreciating property values.

Here’s another simple example that I am sure many can relate to. How often do homeowners forgo on home improvements or repairs because of costs, only to be forced to do so when they are looking to sell their house? Instead of finding a prudent way to improve their circumstances earlier and enjoy those upgrades, they wait till the last moment, only to make those improvements to be enjoyed by someone else.

When it comes to earnings potential, the lost opportunities are numerous and costly. Most people stick to a traditional 9-5 wage earner lifestyle. They neglect the potential for income diversification through investments, side hustles, or career enhancements. The cost of waiting to explore supplementary income opportunities limits financial growth and restricts personal fulfillment.

Instead of waiting for the perfect moment to ask for a raise or pursue alternative income channels, individuals can take proactive steps to unlock hidden talents and potential. Whether it’s starting a side business or seeking career advancement opportunities, diversifying income streams can be life-changing. I have partnered with a career coaching company that helps people discover their unique gifts and strengths through certified personalized aptitude testing. We help people of all ages – especially college students – determine custom career and education paths to maximize their capabilities and earnings potential.

As I mentioned on a recent podcast where I was interviewed – “success is not solely measured by financial metrics such as net worth or salary. True success is realized when individuals accomplish the goals they set out to achieve, no matter how big or small.” Individuals can build a life of fulfillment, accomplishment, and lasting success by continuously striving for personal and financial growth and seizing opportunities as they arise.

Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Approved Funding is a mortgage company offering competitive interest rates as well as specialty niche programs on all types of Residential and Commercial properties. Shmuel has over 20 years of industry experience, including licenses and certifications as a certified mortgage underwriter, residential review appraiser, licensed real estate agent, and direct FHA specialized underwriter. He can be reached via email at Shmuel@approvedfunding.com.

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