How to Live A Financially Comfortable Life by Investing only $3000 a Year in Pullman, Washington For Sale
You are probably somewhat skeptical after reading this title. How many times have you heard this phrase or ones similar to it repeated by professional marketing gurus, only to find that once you purchase the product, the promises are nowhere near true?
After you read this article, however, you will see exactly how this can happen in your own life, and how it will happen if you just follow a few simple steps.
Compounding Helps Your Money Grow Exponentially
Fortunately, through the vehicle of stock investing, you don’t have to scrimp and save every last penny, living a bleak and painful lifestyle during your working years, only to finally enjoy life beginning during retirement. By understanding the principle of compounding, you will learn how to put your money to work for you, so you eventually have more than enough of it to live the life you want.
So, here’s how compounding basically works. Take a look at the following example:
· You invest $xxxx in year 1 and that investment grows by 10%
· You now have $xxxx
· You keep that $xxxx invested and it grows an additional 10% in year 2
· Now you have $xxxx
· Between year 1 and year 2, you made $100
· At the end of year 2, you made an additional $110
Now, what if you repeated that pattern 40 times? You would have around $45,259! If you followed the same method, but started with $xxxx and added another $xxxx each year afterwards, you would end up with $1.596 million! That’s a heck of a lot more than you started with…but how do you actually achieve that result?
How to Consistently Perform at the Market Average or Better
You can grow your money by 10% per year for many years. Unfortunately, the real world stock market doesn’t grow by a nice 10% each year. Some years it goes up 30%, while others it drops by 30%. But, when you look at it over the long run, the stock market does grow by 10% per year on average, and sometimes more than that, depending on which research you believe.
So, once you know how to grow along with the stock market at the same rate or better, the rest is simple. You simply let your money grow until you have the amount you want to live on. And, $xxxx per year for a working family is a realistic and achievable number. At the same time, you won’t have to starve yourself or do without every fun thing. Many families could save more.
The point is, however, you could save enough money to live the life you always wanted. You won’t be purchasing yachts or 10,000 square foot mansions, but you will have enough to purchase a nice home and do many things you enjoy.
When Explained Properly, Investing is Easy to Learn, Even if You’re Not Good with Numbers
When explained well, investing is not difficult to learn. Learn everything you need to know about investing so you can lead your dream lifestyle at http://www.allfinancialfreedom.com.