Most of us think being rich is very difficult. But , That is not true. There are three elements to becoming which the amount of time you have in life, the rate at which you compound money than the amount of money you can save regularly.
Once you do you understand these three elements becoming Rich is very simple. Lets see it how from a story It is like this, if you plan to mango trees and have the time to allow them to grow and then they give you mangoes and you don't enjoy the mangoes you allow it to ripen burst and plant the seeds again and again in a matter of 24 years. From those two mango trees. You will have a huge mango grow and then you cannot plant anymore.
least he was just continued to harvest in mangoes and says the investment is as simple as this. So the sooner you start investing, the better for you.
The greatest thing to do is to start as soon as you get your first pocket money, if you start saving from that time, then you are going to be phenomenally rich.
Given the lifespans that we enjoy today. The average Indian lives to 72 to 74 today, and for the youngsters of today, the lifespan is going to touch 80 if you like Burford, start at 10. And start putting away small amounts of money and learn to compound it properly. And at good rates. You will soon find yourself with money beyond your dreams and you will continue to grow this money all your life.
So what are the three elements I discussed? One is time. So if you start when you're 20
Then you have 60 years of time horizon for you. If you start at 10, then you have 70 years of time. If you start at 30, you have only 50 years of time. If you start at 40, you have 40 years of time.
Why time is important is because it allows the principle of compounding to work, which you give money continues to grow at an exponential rate, as Time keeps on going, as I will demonstrate in a video later, and that is why time is very important.
The second principle which you must know is you should be able to compound that money at rates which are nearly two times that of rate of inflation for inflation is what is the rate at which money loses value. Suppose the average inflation in India is 8%. You should be looking to compound money at minimum of 16% for you to really create wealth.
Once you have your time in horizon fixed and the rate of compounding fixed, then all you have to do is to take away 30 to 40% of your earnings and keep investing in it. Keep keep investing regularly. As the corpus builds, he will start to generate revenue out of the corpus on a regular basis, make sure that you don't spend the returns and reinvest it. So what will happen is, as your carrier progresses, earnings will grow, the returns from the corpus will grow, your the amount you invest will grow. And that will also help have a great impact on the final wealth you have.
So the three things that you need to consider are the amount you can save the length of the runway, and the rate at which you can compound. Thank you.
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