One of the most frequently asked questions during our free 45-minute consultations is, “What kind of rate of return can I get?” The answer to this question can go in many directions. For now, let’s focus on just one.
What Rate of Return Do You Get on Life?
What rate of return have you gotten on your home over the last 20 years? On your car payments? Credit card payments? Vacation spending? College tuition? Business expenses? Office overhead and equipment? What rate of return have you gotten on your life?
Are we suggesting you should be looking for a rate of return on those?
We absolutely are. Not only are we saying that you should be seeking a rate of return on those things, but also that your original question is not relevant within infinite banking practices.
Here is why:
Add up all of the income you have earned since you began working. It will look something like this:
If you are 40 years old and have worked since you were 18, begin with your first full-time job. Say it paid $10,000 per year and your current salary is $140,000 per year. Your average annual earnings would be $60,000 per year. Multiply that by 22 years of work and you have a grand total of $1,320,000. Your current savings balance should be $132,000 plus interest.
If you stopped paying attention halfway through that example, you need to adjust your mindset. This is your money. Do the math and learn the hard facts about it.
Now, does it feel more important right now that you didn’t save 10% of your income or that you have or have not earned a good rate of return on it? It works out a lot better if you earn 2-3% percent on the $132,000 that you’ve saved over time instead of earning 7% while risking capital on the mere $15,000 you have actually managed to save without much discipline.
Building Personal Wealth Takes Discipline
At Alpha Omega Wealth, we are not miracle workers. We aren’t selling you lies that will make you think you can make up for years without accountability. What we can do is give you the knowledge and ability to begin growing the diligence and accountability it takes to start that nest egg without dipping into it along the way.
We are committed to helping our clients create, grow, and utilize a personal banking system to serve their family and business needs for generations to come. Contact us to schedule your free 45-minute consultation to get started growing your private wealth.