My mom used to always tell me:
“Saving your money is the wisest investment.”
I am confident that your mom too.
it sounds like good advice.
But saving can never lead to wealth if the saved money is never put to hard work by having it invested in income-producing assets that generate income and build wealth.
Saving isn’t the key.
But INVESTING is.
It is a numbers game.
Today I will explain why saving is riskier than you think.
Let’s see these two scenarios:
SAVING WITHOUT INVESTING:
Saving 100% no spending
Suppose you earn an average income of 2000$ a month (24,000$ per year).
You start working at 25 years.
You work hard for 40 years
Of course you cannot save the whole earning, you have to spend on renting, buying food, insurance, utilities.
Can you be a millionaire?
NEVER, with an average income of 2000$ you will never be a millionaire if you do not invest.
SAVING WITH INVESTING:
Save 300$ a month to INVEST
You earn average income of 2000$ a month (24,000$ per year)
You start at age 25 year.
You invest 10% of your income a month (300$ or 3600$ per year)
Invest this small amount in 40 years, expected return:
With 10% return in stock market for example your investment will be accumulated to $1.6m.
You possibly can be automatic millionaire by doing nothing.
HOW CAN SMALL INVESTMENT OF $300 A MONTH TURN TO $1.6m?
Here are examples:
A $10,000 investment in Home Depot in 1990 would now be worth $1,630,800.
A $10,000 investment in Apple in 1990 would now be worth $2,988,700.
A $10,000 investment in Microsoft in 1990 would now be worth $3,299,300.
The largest financial rewards are held for long-term investor.
Start investing … Stay Invested
If you are ready to take the first step in your investing journey , enroll in my course “Investing For Beginners: How To Invest With Confidence” HERE.