You’ve probably lost a huge sum of money before and not even known it. I know I have. It’s not a fun lesson to learn, and unfortunately you don’t catch it until a lot of the damage has been done.
In my case, it came in the form of opportunity cost. The things that you spend money on today that will end up costing you a lot more in the future. Even up to a million dollars more!
We live in a society that’s constantly marketing to us everywhere we turn, and our friends and neighbors only seem to raise the bar for us. We were once fine driving our old clunky cars, and then our pal Joe drives by in a shiny new Lexus and all of a sudden we feel the need to upgrade! And so it goes with all other areas of life as well…
Over the past 20 years, and up until recently, I was that guy keeping an eye on what Joe was driving. And what new appliances were rolling into his house, how many channels he was getting off that dish satellite on his roof, etc etc. I was on financial “autopilot” – happy to be putting in a measly 10% into my 401(k), figuring, like everyone else, I’d be working until 62 or older.
To get the rest of the story, check it out over at J. Money’s super fantastic blog, here: How to Lose a Million Dollars