The rule is simple, it doesn’t matter how much or little money you earn, any income you earn you must put aside 10% and reinvest that 10% into profit making enterprises or place with bankers who will earn you interest. Leave this investment in place and do not touch it, add to it every week or every month depending on when you get paid.
You will be surprised that with a little adjustment to your budget how you will be able to manage without that 10% of your income.
Good money software - FREE 15 Day TrialFree download now...Let’s look at some examples:These are approximate figures…Say you earn $2,000 per month, you invest $200 per month into a high interest investment i.e. 10% per annum you will accrue $2,640.00 in year 1, $16,177 by year 5 and $42,074 by year 10. The longer you leave your investment in place and keep adding to it the magic of compounding interest will take off and your wealth will really start to grow.
Disclaimer: You may want to spread your risk by investing in a number of investment options, you should seek qualified financial advice before taking action.
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