Start early!
When it comes to saving money and investing for your future, it’s never too early to start. Every payday, most of us are faced with the dilemma whether to start saving today or put it off until next month.
Here’s a story of a young man who knew that he could earn more for his future by starting to save earlier.
At age 22, Ping took the first steps in making his money grow. Every month, he saved P2,000 of his monthly income. Then he placed it in a good and stable investment that gave 10% compounded interest yearly. He did it for 10 years until he was unable to add more to his investment and forgot about it.
On the other hand, his friend Pong took his sweet time before investing. He waited until the age of 40 when he had money to spare. He followed the same steps but he doubled the amount to P4,000 so he could catch up with Ping.
Reap the rewards!
Twenty years later, at the age of 60, Ping and Pong crossed paths again. Can you guess who had more money?
Remember, Pong invested late but his P480,000 was TWICE as much as Ping’s initial contribution. With 10% annual compounded interest, Pong’s investment became 2 million pesos.
But Ping, who invested EARLIER, gave his money more time to grow. Even though he stopped putting in money after a while, his money continued to earn interest. Although his total investment was only P240,000, at 10% annual compounded interest, his earnings reached
6 MILLION pesos. THREE TIMES the amount of Pong’s earnings!
Start early. Earn more. That’s smart investing!
What should we start doing early so we can earn more?
Save regularly. Set aside a portion of your monthly income regularly for the specific purpose of investing. No matter how small, the key is doing it regularly.
Spend time to learn. Knowing the different kinds of investments available to you is beneficial to making your money grow. Find out what your options are and choose the one that best fits your needs.
Focus on your goal in life. Whether it’s getting married, living in your dream house, driving your own car, travelling abroad, or retiring comfortably, you need to establish SPECIFIC financial goals. Write them down to constantly remind you to make saving and investing a priority. Discipline and focus are the keys to achieving your dreams.
Start early and use time to your advantage to achieve your financial goals. Time is money and if you start investing early, your money will start growing too!
“Time is the only resource you can never get back.” When it comes to investing, time is one of the most important assets.
Shared by Coach Amos
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Shared from Pesos and Sense
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