Warren Buffet is an example of the most successful investment icon of this world. He has not build wealth over night. No one can build wealth over night. To build wealth you must remember those steps of investment, budget to save, save to invest, invest long term and control your debts. But this is for sure that all rich people did something very different than most of us. We will discuss few such wise investment to-do's.
Start the process of investment as early as possible.
Get the benefit of compounding of money
Once there was a king and a farmer. Both of them were good friends since childhood. One day they were playing chess and the farmer played a good game and defeated the king. King was very impressed with the farmers game and he asked the farmer to choose his reward. The farmer was very clever. He asked the king to give him 1 grain of rice for the first square of the chess board. 2 grains of rice for the second, 4 grains of rice for the third, 8 grains of the rice for the fourth and so on till the 64 squares are complete. The quantity of grain that was required to fill was 18,446,744,073,709,551615.
Suppose you have 1 today. Every year your money doubles, then at the end of 64 years, your investment of 1 today will become 18,446,744,073,709,551615.
This is the power of early investment compounding of money. Lets take a more practical example. Assuming your father gave you 1,000 on your 10th birthday. As you was to young to handle that money he decided to make a fixed deposit of those 1,000 for next 50 years. Fixed deposit gave a steady return on investment @ 8% per annum.
* Your investment of just 1,000 today will become 47,000 in 50 years
* Your investment of just 5,000 today will become 235,000 in 50 years
* Your investment of just 20,000 today will become 938,000 in 50 years
Source: http://ezinearticles.com/?Investment-Guide&id=3111509
Start the process of investment as early as possible.
Get the benefit of compounding of money
Once there was a king and a farmer. Both of them were good friends since childhood. One day they were playing chess and the farmer played a good game and defeated the king. King was very impressed with the farmers game and he asked the farmer to choose his reward. The farmer was very clever. He asked the king to give him 1 grain of rice for the first square of the chess board. 2 grains of rice for the second, 4 grains of rice for the third, 8 grains of the rice for the fourth and so on till the 64 squares are complete. The quantity of grain that was required to fill was 18,446,744,073,709,551615.
Suppose you have 1 today. Every year your money doubles, then at the end of 64 years, your investment of 1 today will become 18,446,744,073,709,551615.
This is the power of early investment compounding of money. Lets take a more practical example. Assuming your father gave you 1,000 on your 10th birthday. As you was to young to handle that money he decided to make a fixed deposit of those 1,000 for next 50 years. Fixed deposit gave a steady return on investment @ 8% per annum.
* Your investment of just 1,000 today will become 47,000 in 50 years
* Your investment of just 5,000 today will become 235,000 in 50 years
* Your investment of just 20,000 today will become 938,000 in 50 years
Source: http://ezinearticles.com/?Investment-Guide&id=3111509
This just prove that investing as early as possible is a good start. Muck more if done regularly in the Stock Market. Knowing the benefit of compound interest as shown above will surely inspire you to pursue your plan of investment.
The above illustration used the fixed deposit or investment in bonds with a fixed rate of return of 8% per annum. Figures were computed based on the 8%, how much more if the money were invested to earn 20%-30% per annum. Investment can be earned in the Stock Market. The higher the risk the higher the return. But it take guts to play in the Stock Market by your own.
Having someone to guide you in your way to Stock Market Investment will be of great help. Find one to mentor you, there are a lot out there that will help you in your journey to the world of Stock Market. I can recommend one: my mentor in Stock Market Investing, the "TrulyRichClub".
See it for yourself.
Click the below.
The above illustration used the fixed deposit or investment in bonds with a fixed rate of return of 8% per annum. Figures were computed based on the 8%, how much more if the money were invested to earn 20%-30% per annum. Investment can be earned in the Stock Market. The higher the risk the higher the return. But it take guts to play in the Stock Market by your own.
Having someone to guide you in your way to Stock Market Investment will be of great help. Find one to mentor you, there are a lot out there that will help you in your journey to the world of Stock Market. I can recommend one: my mentor in Stock Market Investing, the "TrulyRichClub".
See it for yourself.
Click the below.
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