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Investment and Growth
A major key to building wealth is in making your money work for you, instead of you working for your money. If you work for five days in a week and spend all your income without investing any of it, you will have forever lost those five days of work. Forever. Wealthy people take a portion of income from each day and put it into investments that grow on their own, automatically and without any further work, over a long-term period. That way, a portion of each day that you work for money ends up working back for you for many years to come. That is a major key to wealth, getting a percentage of your income every day to work back for you without your intervention.
You do this by taking at least 10% of your daily income before taxes and bills, and putting that into a long-term investment for a minimum of about three years.
Good investments include stocks, mutual funds, certain types of bank accounts that have high and above-inflation interest rates, real estate investment vehicles, bonds, royalty-producing assets, self-maintaining businesses, and so on. These investments do not require you to work for your money. You simply invest, walk away, and your money grows all on its own.
Even one dollar can turn into a million dollars in a certain amount of years at a certain compound interest rate. One dollar, just one dollar, can grow into a million dollars all on its own without your intervention. You would be pleasantly surprised to know that a single dollar placed into an investment that grows at 20% a year will become $1 million in 75 years. That is just one dollar! All you would need to do is leave it alone, go away, go to sleep for 75 years, just leave it alone. When you return it will be $1 million without any effort from you, other than your placing that single dollar at beginning!
Now, if instead you put in a dollar every single day into same 20% a year growth investment, you would end up with $1 million in 32 years instead of 75. In fact, a dollar a day would become $1 billion in 66 years at a 20% a year growth rate. A higher interest rate would dramatically shorten that time.
This shows you that you can never have too little to start with. Whatever your income today, force yourself into habit of investing 10% of your income before you pay bills or taxes or anything else. Pay yourself first – it is your money and your life. And it gets even better. The 1990s was an era where stocks rose phenomenally. In 1990s decade, over 200 stocks rose by 1000%, some by up to 20,000%. Many fell again in 2001 but on long-term, all good companies always rebound to even higher heights. People in 90s invested various amounts and found themselves wealthier for that. Some invested just $50 a week, and if that was their 10%, that was good enough. It grew. Others invested more. $10,000 invested just once at beginning of 1990 in certain stocks turned out to be valued at around $5 million by end of 90s. Others turned a few million dollars into well over one billion in same period. All this wealth growth happened without any extra effort excep! t putting money away into investment.
These people were not doing anything secret – they were investing in publicly available investments. They were investing in well-selected shares in stock market – and anyone can do this. You can do it as well starting now. Just remember, choose your investments well, invest consistently, and put 10% aside from every single paycheck or income. Consistency is key. Compound interest will always work for you without asking anything from you. Your only part is to be consistent, to choose good investments, and to stay put on long term. Short-term investing usually does not earn as much as long-term investing and it is usually a lot riskier.
As you can see, there isn’t much to it. It is all in inside job and outside execution. You can do both of these starting today. No one is in a position whereby they are unable to do anything. There is nothing you cannot be, do or have, because it all starts within you and nothing outside you can stop you. As Henry Ford once said, “Whetehr you think you can or you can’t, either way you are right.”
David Cameron Gikandi, CEO ImagesOfOne.com and author of the Complete Internet Marketing Outline, A Happy Pocket Full of Money: Your Quantum Leap into the Understanding, Having and Enjoying of Immense Wealth and Happiness, and more. Download these and As A Man Thinketh, The Science of Getting Rich and Think and Grow Rich from http://www.ImagesOfOne.com.