"Little by little, a little becomes a lot...plus compounding interest!" - paraphrasing a Tanzanian proverb
Quote for the episode: "If you were wanting to retire tomorrow, it probably wouldn't matter if you threw in a couple more pebbles. It really wouldn't. If you're retiring 30 years from now though, it certainly does matter a lot." (03:29)
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Welcome to the Enjoy More 30s Family Finance
Voiceover Audio:podcast. The only podcast dedicated to making life more
Voiceover Audio:enjoyable for young families by hitting on the financial topics
Voiceover Audio:that tend to weigh on us, stress us out, and distract our focus
Voiceover Audio:from simply enjoying life.
Joseph Okaly:Hello, and welcome once again to the Enjoy More 30s
Joseph Okaly:Family Finance podcast, Our series that we're working on
Joseph Okaly:right now is The Financial Parables of Your Life. Each
Joseph Okaly:week, I'm sharing with you what will probably be a story that
Joseph Okaly:you've heard of before that you're familiar with. But it's
Joseph Okaly:going to be somewhat altered. It's going to be altered to help
Joseph Okaly:teach not just a life lesson, but a financial life lesson,
Joseph Okaly:because stories are just easier to remember. So we're going to
Joseph Okaly:use that to try to help us remember some of these key
Joseph Okaly:concepts.
Joseph Okaly:As always, before I begin, please share and like please
Joseph Okaly:leave reviews. I'd love to reach and help as many young families
Joseph Okaly:out there that I can that are probably just like you.
Joseph Okaly:So today, please join me for our story, The Crow and the Pitcher.
Joseph Okaly:In a spell of dry weather, when the birds could find very little
Joseph Okaly:to drink, a thirsty crow found a pitcher with a little water in
Joseph Okaly:it. But the pitcher was high and had a narrow neck and no matter
Joseph Okaly:how he tried, the crow could not reach the water. The poor thing
Joseph Okaly:felt as if he must die of thirst. Then an idea came to him
Joseph Okaly:picking up some small pebbles, he dropped them into the
Joseph Okaly:pitcher, one by one. With each pebble, the water rose a little
Joseph Okaly:bit higher, and a little bit higher, until at last it was
Joseph Okaly:near enough so that he could drink.
Joseph Okaly:So something as small as a pebble, just a little tiny
Joseph Okaly:pebble, when it's combined together with lots of other
Joseph Okaly:little things, other small pebbles, it can help you achieve
Joseph Okaly:what you want to achieve. And not just something small, like
Joseph Okaly:taking a drink, but really large goals as well. And when you're
Joseph Okaly:young, it may feel almost like a waste of time maybe putting that
Joseph Okaly:pebble into the pitcher. It probably feels like you're
Joseph Okaly:putting a pebble into probably more like a swimming pool when
Joseph Okaly:you're young. I mean, it's just a pebble, right? It's just a
Joseph Okaly:pebble for crying out loud! You get your first 401(k) statement
Joseph Okaly:that you threw a couple pebbles into and it essentially says you
Joseph Okaly:know, "well thanks for playing, but you still have pretty much
Joseph Okaly:nothing", right? So who cares? Why should I even waste my time
Joseph Okaly:with this? When you put that small amount away though, and
Joseph Okaly:you keep doing it month after month after month, year after
Joseph Okaly:year, it will build up. It will fill that pitcher and now you
Joseph Okaly:can get what you're wanting to achieve. And the great thing,
Joseph Okaly:unlike the crow with his little pebbles, the pebbles that we're
Joseph Okaly:using those amounts grow on themselves. Every dollar that
Joseph Okaly:you put in grows on the next dollar and the next dollar. So
Joseph Okaly:every pebble, when you do it, is going to raise the water up
Joseph Okaly:faster to the surface than the one before it. Every pebble is
Joseph Okaly:more like a little sponge. It's slowly expanding more and more
Joseph Okaly:over time more and more rapidly filling it up. Then if you can
Joseph Okaly:save a little bit more put in a little bigger pebble, you can
Joseph Okaly:save maybe $200 instead of $100. $250 per month instead of $200
Joseph Okaly:per month. It's going to add up more and more over time. If you
Joseph Okaly:were wanting to retire tomorrow, it probably wouldn't matter if
Joseph Okaly:you threw in a couple more pebbles. It really wouldn't. If
Joseph Okaly:you're retiring 30 years from now though, it certainly does
Joseph Okaly:matter a lot.
Joseph Okaly:So thanks for tuning in today and join us for next week's
Joseph Okaly:story, The Empty Boat. I hope you enjoyed today's story.
Joseph Okaly:Please remember to leave those reviews and share for others.
Joseph Okaly:And if you need any help, don't hesitate in reaching out. I
Joseph Okaly:probably have helped someone just like you. Until next week.
Joseph Okaly:Thanks for tuning in today and joining me here and I look
Joseph Okaly:forward to connecting with you again soon.
Voiceover Audio:The conversations on this show are
Voiceover Audio:Joe's opinions and provided for general information purposes
Voiceover Audio:only. They do not constitute accounting, legal, tax, or other
Voiceover Audio:professional advice for your specific situation. You should
Voiceover Audio:always seek appropriate advice from a financial advisor,
Voiceover Audio:accountant, lawyer, or other professional before acting upon
Voiceover Audio:any content or information found here first. Joe is affiliated
Voiceover Audio:with New Horizons Wealth Management LLC, a branch office
Voiceover Audio:of TFS Securities, Inc., and TFS Advisory Services an SEC
Voiceover Audio:Registered Investment Advisor, Member FINRA/SIPC.