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The power of compounding ~ Get Rich Slowly
Make Compounding Work For You
- Start early. The sooner you start, the more time compounding can work in your favour and the wealthier you can become. Next to starting early is starting now.
- Stay disciplined. Make regular contributions to your savings and retirement accounts. Try to increase your deposits with time. Your goal is to generate a large saving rate.
- Be patient. Don't touch your investments. Compounding only works if you let your money grow.
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SIMILAR ARTICLES & IDEAS:
Investing isn't gambling. While you can invest in literally anything, stocks, bonds, and real estate present the best investment opportunities.
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Key Ideas
Common investment questions
Two of the most common investment questions are "what do you invest in " and "what are the best investing strategies"?
The best investing strategies are...
Shady investment advice
Bad investing advice can come from many quarters, such as wealth expos or financial advisors. If anyone promises you any type of return over 12%, 99% of the time, they are probably playing you.
There are great financial advisors out there, but many people who sell investment products just want your money. However, it's not that hard to invest for yourself.
How to avoid bad investment advice
- Never buy a financial or investing product from someone you just met.
- Getting returns over 12% per year is ridiculously hard. If it sounds too good to be true, it is.
- If you don't understand it, don't invest in it.
- If one of your friends recommends an investment that's making them a lot of money, they are probably suckers too. If you see the "results not typical" on any marketing materials, move on.
- There are no "secrets of the super-wealthy" that anyone will sell you for $500 or that you can take advantage of unless you have hundreds of thousands of dollars.
When the blogger and personal finance expert known as J. Money started saving for the future, retirement was the furthest thing from his mind. He was in his late 20s, working for a tech startup, and thinking about buying a house and getting married.
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Key Idea
Smart retirement planning boils down to a few simple truths.
- Time is on your side. The earlier you start saving money, the more time you give compounding to work for you.
- Take risks when you're young. Althoug...
The biggest misconception about investing is that it's reserved for the rich. That might've been true to some extent 10 years ago. But that barrier to entry is gone today, knocked down by companies and services that have made it their mission to make investment options available for everyone, including beginners and those who have just small amounts of money to put to work.
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6 ideal investments for beginners
- If you have a 401(k) or another retirement plan at work, it’s very likely the first place you should put your money— especially if your company matches a portion of your contributions.