One of the most important things you can do to create a healthy financial life is invest regularly and automatically.
If you’re not already investing, don’t wait another day. Don’t wait because time is not in your favor. Unfortunately women think we have to be perfect and know everything before we start to do anything. Simply investing $50 per month will help you create financial independence.
It’s important to understand the difference between savings and investing. Saving money won’t make you rich, but it will be there when you need it. Savings are when you put your money in checking accounts, savings accounts, certificate of deposits, money market accounts, U.S. Savings Bonds, etc. Investing involves more risk, but if you make good investment decisions, your investments will yield higher returns over time than savings. Investing is when you put your money in stocks, mutual funds, bonds, etc.
Let’s look at what happens when you invest $10.00 per week at 8% beginning at age 30. At age 65 your initial investment of $18,200 will have grown to $99,402. That’s $81202 in earnings. Now, let’s look at what your investment would be if you started 10 years earlier at age 20. Your initial investment of $23,400 would have grown to $228,563 at age 65 -- $129,161 more in earnings.
www.forbes.com
Read More
0 comments:
Join the Conversation