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|How To Become An Investor In Your 20’s With Compound Interest In View by dailyguide(m): 11:50am On Aug 22, 2019|
One of the biggest mistakes we make as young people is the dependent on salaries/wages from jobs as the only source of getting rich. The tragedy of which is that we are often wrong on this assumption. Trying to save up your salaries on a monthly basis aren’t advisable ways to securing a financial trouble free future for yourself.
Most of the times when we try to be smart and make good use of our pay or earnings , we decide to tie down money buy acquiring things of which most times are liabilities. Having to make money is no longer the issue but the ability to multiply money is what we lack knowledge of.
It is often disheartening that we make mention of investments but we haven’t got the courage to venture into any. This is the purpose of this article today, to open your eyes to the secret of investment and the need for you to start it.
May I quickly make this disclaimer that an investment is not something you get on today and expect to start getting dividends on it the next month if you are really going for something big and massive. This is why I am being specific in the age range for this article in my topic.
As a young man or woman in his/her 20’s your investments are for your days in the 40’s and above when your interests would have compounded and multiplied.
Beds, cars, mobile phones, TVs – and anything that naturally depreciates with use and time – are not investments so don’t count things like this which we almost spend money on in our 20’s as investments.
What are Investments?
Investment is putting money to work to start or expand a project – or to purchase an asset or interest – where those funds are then put to work, with the goal to income and increased value over time. The term “investment” can refer to any mechanism used for generating future income. In the financial sense, this includes the purchase of bonds, stocks or real estate property among several others.
The need to start pumping your money into something valuable and yielding at this early stage of life is very important. There is a need to understand the distinct difference between spending and investing.
Spenders don’t get richer, investors do!
Are you spending or investing?
Where are you throwing your money?
Yes the excuse is “I don’t make a hundred thousand, I only get a token.”
The question is “What do you do with the token?”
Rome wasn’t built in a day, if you can’t accumulate in small things then you can’t accumulate bigger things.
I was a boy less than 20 when I walked into the bank to inquire about fixed deposit but I was foolish when I walked out simply because the interest was low.
Take this, no interest come in millions on the start, it comes little, it’s your interest you wait for to compound and in a few while, the seeming little will be too much to handle.
In my next post I will be giving a list of things you can invest in while in your 20’s to secure for yourself a great future.
One thing I will also want to project to you as we journey this road of investment is letting your interest grow. Don’t be a premature interest reaper. Learn to reap compound interest.
Here is a mathematical explanation :
I invested in a venture a sum of 100,000naira on an interest of 5% per month which means at the end of each month I get 105,000naira
To some, 5,000 Naira is a gain they need to start enjoying immediately but no! You must learn to reinvest your 105,000naira to get an increased amount the following month.
When your principal increase, your interest move and at that, by the time you are done in a couple of years, your return on investment(ROI) will be massive.
Begin to build in yourself the mind of an investor as we proceed in this investment strategy walk. You can’t afford to live in a dark future, start investing in it and begin to foresee its brightness even when you are yet to be there.
Source : https://dailyguide.com.ng/how-to-become-an-investor-in-your-20s-with-compound-interest-in-view/
|Re: How To Become An Investor In Your 20’s With Compound Interest In View by dailyguide(m): 12:23pm On Aug 22, 2019|
You can also enjoy more of my articles like
What Net-worth Is and How To Build and Calculate Your Net-worth
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