My decision to not upgrade my car will make me £440k!

10 years ago a senior and well respected business coach asked me:

“When are you going to get a decent car, one befitting your position?”

His exact words (they stuck with me!)

I was driving a fairly new Golf convertible, which I loved. So his comment pissed me off.

His message; that to give financial advice to my clients  I had to look financially successful. That the outward displays mattered more than actual wealth.

What a twisted toxic message. Spend your money to look wealthy to other people instead of investing in your future.

I never did take his advice. In fact I did the opposite.

I’m still driving that car; it’s 13 years old, I still love it, and it does its job of getting me to places.

And instead of sinking money into a depreciating asset I put my money to work.

I focus on financial security, not appearances. I use the magic of compounding to build my financial security.

When I worked out the saving the figures stunned me.

Instead of taking out car finance and upgrading every 3 years, and let’s say a “decent” car is £500 a month, I put that money to work in my pension, with tax relief - win win.

After 10 years I’ve got £89k extra cash in my pension.

And the mind-blowing part is, assuming average stock market returns, in another 20 years when I want to spend it, that investment will be worth £440k!

That’s the power of compounding. Small decisions today can create huge results for future you.

What’s the best ‘small’ decision you ever made that had a huge impact later?