Rich and Happy

Casey Halliley is the founder and Chief Educating Officer of Wealthology, a company whose mission is to educate young professionals in the basics of financial literacy.   She believes the earlier one gets a handle on their money, the better off they are. www.wealthology101.com  casey@wealthologyinc.com

Gather round girls. I’ve finally figured out the secret to becoming RICH and HAPPY.   

I wish I could tell you that I figured it out during the two years I spent getting my Masters in Public Finance at NYU.  Or the three years I spent trading currencies at Citibank. Or the seven years I spent trading Structured Credit at Barclays. Or the four years I spent working at an Investment Advisory firm.

But, no.  I learned the secret to becoming RICH and HAPPY from a 25-year-old girl named Molly working in a sandwich shop.  

The irony of all ironies.  

Molly didn’t own the sandwich shop.   She didn’t even manage the sandwich shop.  She started working there when she was 15 years old, after school and on weekends, making $10/hour.  From very early on, she was determined to save. Being 15, she decided she was going to take $15 a day and put it into an account that was invested and compounding. At first, this was one and a half hours of work per day for her, but eventually, when she got a raise to $15/hour, it amounted to just one hour of work per day.

One day, when I was checking out with my tuna sandwich, Snapple, a bag of chips and a chocolate bar, she shared her philosophy with me:

WORKING HARD AND SAVING FOR MY FUTURE MAKES ME FEEL HAPPY.

She counted herself really lucky because working in a sandwich shop allowed her to make her lunch there and drink the company coffee.   With that alone, she was saving herself $15 a day.

I couldn’t believe it when she told me what she expected to have saved by the time she turned 65. $2,500,000.* Just by eating a salad for lunch, having her 3 pm coffee there instead of a fancy coffee shop, and taking $15 a day and putting into an account that was invested and compounding.   

RICH.            

She had all the logistics ironed out too.  She set up a direct deposit to go straight into her account every day, eliminating the possibility of missing a valuable day of saving.  And the money went straight into a low fee and diverse investment, like the S&P 500.

I was amazed that, after all my education in finance, and the years spent analyzing and trading incredibly complex financial products, something so simple had passed me by.  The idea that I should be saving one hour of my earnings for my future. And that those savings should be invested and compounding. I was inspired by this young girl working in a sandwich shop, and I have carried her message with me ever since. She worked hard, saved for herself, and felt happy and proud of herself for doing that.

HAPPY.

At Wealthology, we are on a mission to educate as many young people as possible in the basics of financial literacy, so they can make smarter choices with their money. Like Molly.

Start early.  Make it Automatic.  Get Your Savings Invested and Compounding.

Let’s tell every girl we know, and then tell them to spread the word.  

*She assumed a relatively conservative 7% return.  Earning 8% would be worth $3.6m, earning 9% would be worth $5.4m, and 10% would be $8m over the same time period.   

What is the average annual return of the S&P 500? https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp

DISCLAIMER:  Information presented is for educational purposes only.  It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies.  Investments involve risk and are not guaranteed.  Wealthology does not provide legal, tax or accounting advice.  You should consult your legal and/or tax advisors before making any financial decisions.  Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.  Investment products are not FDIC insured, are not bank guaranteed, are not insured by any federal government agency and may lose value.