Get Rich by Saving

Get Rich by Start Saving in your 20s

Many of you may never heard the miracles of the compound interest. The Compound interest so powerful over the time that, it multiplies your wealth in a breath taking manner over the time. Now, if you are in your twenties and want to get rich in your life than the only thing you have to do is – Start investing early.

Here is the real time example.

Consider this scenario: If you begin saving for retirement at 25, putting away $2,000 a year for just 40 years, you'll have around $560,000, assuming earnings grow at 8% annually. Now, let's say you wait until you're 35 to start saving. You put away the same $2,000 a year, but for three decades instead, and earnings grow at 8% a year. When you're 65 you'll wind up with around $245,000 -- less than half the money.

You can see in the above example that only 10 years of difference in investing makes a huge difference in wealth later on. This is because of the compound interest. If you never start investing, you will never become rich and financially free.

And if you someday really want to get rich in your life than you should start investing as early as possible in your life probably in your twenties. Warren Buffet is the second richest person in the world and he started investing in the stock market when he was just 13. Today he is 80 and he has accumulated tremendous wealth only by investing his money.

Many people have a false belief that, to become rich, they need to build a fortune or do some large scale ventures in their life. But this is a Myth.

To Become rich in your life, you need to do one simple thing in your life and that is – Start Savings & Investing Early.

Yes, This is the 95% advise that anyone needs for his/her financial success and rest of the advises amount for only 5% for getting rich. So if you are in your twenties than it’s the best time to start investing.

Start Investing Now

Start Investing Now

My several friends ask me one common question every time - “When Should I Start Investing?”. My Simple and the best answer to all such kind of questions is - “Start Investing Now”.

But most of them don’t understand the deep meaning behind my this statement. Again after few months, they ask me the same question – when should I start Investing? I again reply that Start Investing Now. In fact, anybody anytime ask me this question, my answer is the same.

Many of my friends get frustrated by this answer and tell me that, Every time you give us the same advise again and again. Tell something new. Tell something about when is the right time to invest in the Stock market? When is the right time to start investing for a newbie?

Unfortunately, my answer to all of the above questions is the same – Start Investing Now.

Because NOW is the right time of Investing. I am saying this because this is the advise that amounts for 95% of your Investment success. The reason is the Compound interest. The Compound interest is so powerful over the time that, it multiplies your wealth in a breath taking manner. But for that, you have to invest for the long long time. You have to make time work for you via compound interest than and only it will work for you.

No matter how the market conditions today is. but the right time of investing is still now. There is an old saying that,

“The Best Time to Start Investing was 20 Years before & The Second Best Time is NOW.”

Thus, this much is the importance of starting early. If you can start investing today than don’t wait for tomorrow because the lost money can be recovered but the lost time can never be recovered.

Start Investing Early

Start Investing Early

Many people ask me that, Which is the single most effective advise that you would like to give the people who want to start the Investment for their Financial Future? Well, my single most effective advise is – Start as Early as Possible means Now…!!!

Believe me…This is the 95% advise that anyone needs to succeed in the game of Investment. One of the reason why Warren Buffet is world’s most successful Investor is because he started investing when he was 13. Today he is 80. Nobody else in this world has ever started investing this much early in the history of mankind and that’s why he is the richest investor today.

Now, you will ask me that, What is the reason behind this? Well, the reason is – The Compound Interest. According to Albert Einstein, The Compound interest is the greatest force in the Universe. If worked on your wealth, it can multiply your wealth in a breath taking manner. The Compound interest grows exponentially over the time unlike the simple interest which grows in the linear proportion.

Only 5 years of difference can make a huge difference in your wealth later on. Say for Example, you start investing at the age of 25 and your friend starts investing at the age of 30 than at the age of 65, your wealth will be more than double than your friend even if both of you have earned the same amount of money whole of your life. This is because you have started investing 5 years early than your friend and this 5 years will make a huge difference in the wealth later on because of the compound interest.

So Start Investing early rather than earning a lot in the later life.