I will help you become very rich but it might take a while, but that better than not at all!
This might seem like an area of interest for people of a certain age, but that is presuming far too much and it is excluding all those younger people who have not discovered the magic of compounding. E.G. if you had £1,000 (or US$1,000) and it grew at 3% p.a. how long would it take to double in value?
Well it is not 33.3 years. The answer is 23.5 years. It is less but still a long time.
What happens when you start working with figures like 6% and 12%. Does the time span decrease proportionately?
6% takes just under 12 years and 12% takes 6 years to double your stake!
Of course the big question is how do you get returns like 12% and the answer is not the building society or the bank. More of that later.
If you could double your savings every 6 years and you started £1000 aged 18 how much will you have by the time you are 60. Which means if you are currently 18 year then at 60 they will probably have another 10 years before they get a state pension.
The answer is £128,000. And this is how we arrive at it. Between the age of 18 and 60 there are 42 years and if your money is doubling every 6 years then there will be 7 times that money will double in value. Kapeesh!
There is no getting away from the fact that £128k will not have the same value as it does now, but if you read on then I will show you additional ways to increase wealth.
1> You should add funds at all opportunities.
2> You should not waste money , not even small amounts, indeed especially not small amounts.
3> Don't be afraid to try out calculated risks.
4> Go on Youtube and search "Warren Buffet"
The above is telling you to start investing as young as possible
In my next blog I will start pointing you at ways to get better than bank interest returns.
I have recently added Centrica (CNA), Royal Sun Alliance (RSA) and Admiral (ADM) to my portfolio.
The market recently pulled back and this gave a buying opportunity.
I like Insurance companies, it is legalised gambling on grand scale. We hand over our cash and they invest it, hopefully wisely. And with luck they will not be paying back too much. And if they do they put up the premiums.
Centrica is British Gas. Supplying same to the UK and USA. They are not not making anymore it so prices will only head one way.
All of the above are long term holds with fat dividends that grow year on year.