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You have likely heard this before, and in the context of personal finance, it is absolutely true. The worst thing that I have witnessed after three decades of field experience is the personal tragedy of outliving your money. As we are living longer, and the costs of living and custodial care are so high, there is a likely possibility that this could happen to you, especially if you procrastinate and save too little, too late in life.

In 2017, the stock market hit all-time highs on 71 days and the S&P 500 increased by nearly 22%. The only constant with the markets is change, so invest for the long term and, if you are invested in the stock market, be prepared to put your chips on the side of the table when we inevitably enter the next bear market.

Over the past twenty years, with all the drama in our economy, the S&P 500 has still averaged about 8% per year. At that rate, your money doubles every nine years. Unfortunately, the odds are against you winning the lottery, inheriting enough money to buy you financial security or marrying rich. Take the reins on your financial future and do not be dependent on someone else.

If you divide the rate of return on your investments by 72, that equals the number of years it will take to double your money – that is called the Rule of 72. The Rule of 115 follows the Rule of 72 and shows you how long it will take to TRIPLE your money – same formula: divide the rate of return or interest rate by 115 and that is how many years it will take to triple your money. Unfortunately, investors are easily deterred from their long-term investment goals as various drama in their lives compels them to commit financial suicide by the untimely raiding of their savings and retirement accounts. Common sense is derailed and this is how you someone ends up working until death, becomes homeless or worse.

This quote is all mine. Have you ever paid off a car loan or a credit card? What a great feeling that is to free up those funds that you were forced to give to a bank or credit card or student loan. Eliminating debt gives you extra funds to save to meet your investment objectives and achieve financial security.

In my life, I have never paid a penny in credit card interest and paid off my fifteen year mortgage in eight years. There is a certain degree of exhilaration when you live debt free. Experience that. Debt is a self-inflicted wound. Save your money to buy the things outright you need or want and avoid credit completely. You will live longer, healthier and happier.