You don’t have to be a genius to get rich

Seriously, you dont….It’s not about being a genius, it’s about getting started.
I advise people on personal finance including banking, budgeting, saving, and investing. How to save your money-tricks, how to budget, and using credit cards, etc. How to make more money by investing? What are stocks? Bonds? Mutual funds? What can you do to start today and maximize returns?

All you need is three ingredients, income, discipline and time. Chances are, you already have two of them, income and time. All you need to do is add the third, discipline.

Here’s how it works: Say you start with nothing, invest $500 (of your income) a month (a healthy discipline), and let your money ride (over time) in diversified investments. Long term, the stock market returns at least 10% annually. Assuming a 10% return, you’d have $102,000 after 10 years, $380,000 after 20 years, and $1.1 million in 30 years.


It REALLY pays to start now. Check this: if you save 100 bucks/month until you’re 30 (for only 10 years, then you never save money again), and your dumb friend starts later–saving 100 bucks/month from age 30 to 65 (that’s 35 years compared to your 10 years)–you will have way more money (over $100,000 more) than him at age 65. Start early and you will be rich.

Here’s the bottom line, like it or not: The fate of your retirement, your comfort in older age, probably lies in your commitment to the concepts laid out above.

It’s not easy. But it’s very, very simple.

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6 Responses

  1. beanpants says:

    The 10% average stock market return for the past 70 years also is post inflation. So it’s like 13% or so with inflation included.

  2. smartwithmoney says:

    About 20% of our income goes right into retirement saving, I wish we could do more.

  3. Jasonnoguchi says:

    how about the erosion effects of inflation? how about those who retired smack on a correction year like on 2000?

  4. Intiendes says:

    $100 is already about Php5,000 and I only earn about Php10,000 monthly. I could only save about Php500 monthly, so its just a small amount.
    But its really good to save. At least you’ll have something.

  5. Bryan Baker says:

    Professional…what layout is this? I like it. Would you be interested in a link exchange? I think our sites would compliment each other…let me know.

  6. Michelle says:

    Thanks for the reminder…most of us forget that the basic rule for saving is just that, basic! Earn Money. Don’t spend it. Money saved.

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