Are you broken or do you think that your income is not enough to build a fortune? Let me tell you that no matter what you earn you can surely become rich if that is your purpose in life.
At first you need to be commited to your goal so that you must focus on it whenever and wherever you are.
Secondly, create your own budget in order to be more awar of your expenses. So it is a commom mistake to not have a budget, your financial planning portofolio.
Third, start saving at leat 10 to 15% of your income. Because of compounding interest the quicker you can start saving the better you will reach your goal. Every little bit counts.
Let s take the example of Mr Jim who plan to save only for 5 years. His initial investment, the amount of money available to invest initially is 600$. The amount that he plans to add to the principal every month is 50$, with an interest rate of 5% a year.
The chart below shows an estimate of how much his initial savings will grow over time, according to his interest rate and compounding schedule as specified. Take a close look at this chart.
His initial investment of 600$ has turned into more than 4000$.
Can you guess what will happen in 10 or 20 years?
Warren Buffet says "Don't save what is left after spending. Spend what is left after saving".
Always think a step ahead. Follow this video for more insights.
Sheers
