Do you feel financially lost? Do you earn your salary each and every month, yet you feel like you and your finances are going nowhere? Are you worried that when you retire, you won’t have enough money? Here’s how you can start growing your money today…
The secret: Invest Your Money.
You can invest your money in a business, in real estate, in mutual funds, the stock market, or a combination of all of these.
Yes, you will need to have some amount in savings for those emergencies or rainy days. But the excess amount, you will need to invest in something that earns you more than 0.8 percent per year.
What excess cash?
I hear you. The month comes to an end and you wonder where all your money went. Why not keep a money diary, and start budgeting, right?
You’ll see where your cash went: food, gadgets, clothes, education, gasoline, travel expenses, relatives, medical emergencies, friends in need, electricity, water, salaries of your kasambahays… Wait, is something missing?
The Missing Link: Your Investment
Did you notice that we usually do not have an “expense” called “Retirement Fund”?
We tend to spend on everything (and for everyone). We often forget, however, to invest in our future.
Afraid to start your own business? Scared of the huge cashflow required in real estate? No problem… start small.
Begin with mutual funds.
Just remember that since you will be earning a higher interest (compared to an ordinary bank savings account), you will have to shoulder higher risk.
Yes, there is a risk that you will lose the money that you invest in mutual funds. But at least you have a better chance of growing your money faster than if you kept it in a savings account.
Here’s an example…
You put P10,000 in a savings account this year. Next year, that will grow to P10,080.
An items which cost P10,000 today will cost P10,400 next year (assuming an inflation rate of 4%). Take a look at your P10,080 savings.
If you invest P10,000 in a mutual fund this year, you might see it grow to P10,500 next year. Or even P10,800 or perhaps even shrink to less than P10,000 (higher returns come with higher risk).
What if the value of your investment in a mutual fund drops? If you don’t redeem it, if you don’t “encash” it when the value is low, then any shrinkage is just on paper. That’s why it makes sense to invest for the long-term.
In the long run (e.g., 10 years, 20 years) you stand a better chance of growing your money more by investing in something other than just an ordinary savings account.
The question is: How does this work?
Do you want to get more details? Check out the Truly Rich Club today.