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How to get rich the easy way page 2

If you wait until after you buy some things or pay some bills you will put off, run out of money or otherwise it just won’t get done. So many of us say we are going to start doing something like losing weight, start investing, put more time and money into our children, etc. The problem is that we say we’re going to get started in doing it but then we lose interest and time goes by and nothing ever becomes of it.

Next thing you know 10 years goes by and you’ve lost 10 years of investing and compound interest. If you only knew what power compound interest could do for you and your savings it would blow your mind. My suggestion is to go and find a free online compound interest calculator (which there are many of these) and see what can really happened with an investment of just a few hundred dollars a month or two you get paid weekly like $50 or so a week. Obviously, stick with 10% of your income first. Later on you can change this as you go along.

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And another big thing is to keep track of your money. It is neat to watch it grow and gain the power of compound interest. That initial investment of $100 and the $100 a month or so will amaze you over the years as to how large it can get. If you give it enough time you’ll find that there will come a point when your money will earn more money than you do. This is the sweet spot – when you can retire and you don’t have to earn your income any more.

This is what you want. To be able to earn enough money from your investments that you no longer have to work anymore. That doesn’t mean you should just quit. The best advice there is to continue to work and keep putting that money or more money two words your investments. This will only ratchet up the earnings and the compounding interest.

The simple idea of paying yourself first and then letting compound interest take care of the rest has created many millionaires and could easily make you the next one. It’s not a overnight get rich quick scheme and will take years to work, but the difference is, as long as you choose safe, well diversified investments and stick with your paying yourself 10% every pay period and investing it, you are virtually guaranteed over the years to become wealthy and a millionaire.

My advice here is to use an Excel spreadsheet to keep track of your money and its growth. You can quickly take your data and convert it to a chart like a bar chart or line chart and see its growth. Visually seeing the power compound interest will have on your money will simply blow your mind. Yes, you are giving up that 10% of your income every pay period, but what you will be getting back in return for it is so much more.

By setting up an investment to automatically occur every month like an auto investing program through Vanguard or any investment house will make it foolproof – you will ever see the money will automatically be taken out of your account before you get to do anything to it. You can easily learn to live on 10% less per pay period, especially when you think of what that 10% will grow to over time.

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That 10% you pay yourself first could literally mean the difference between a great retirement and life in the poor house. One last piece of advice, be sure and shop around for investment companies. Use low cost investment companies and be sure and use no-load mutual funds and ETF’s (you don’t want to pay huge fees on your investments that shouldn’t have to – no load funds on average do just as well as high load funds with big fees).

So in conclusion, learn to pay yourself first and you will find you will have more money and less stress later on in life. Let compound interest get to work for you and make you rich. Build wealth the only guaranteed way – pay yourself first!

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