Have you ever wondered how people get rich from the stock market when the average stock market return is only 7%?
The chart above answers this perfectly, the answer is in compound interest.
Once you put money into the market, that money creates a little more money, which is called interest. Now that money plus the interest earns even more interest the next year, which gets added in to generate even more the next year. This is how money works for you, the longer you leave it in, the more money it creates to make even more money for you. Get the picture? Start investing now on a regular schedule, and it'll add up big time long term! Don't wait though, the difference of just a few years will cost you big time later!
Investing is only one of the many steps to becoming wealthy. Read on for my 10 step formula to building wealth.
You've probably heard of the Millionaire Next Door, The Richest Man in Babylon, Dave Ramsey's Total Money Makeover, Rich Dad Poor Dad, Graham's The Intelligent Investor, Think and Grow Rich, and The Millionaire Mind. I've read them all, and many many more just like them.
The thing is, they all say about the same thing. In my experience, if you follow that advice, it will work to generate wealth. In this article, I've picked out the top 10 steps you can take to generate wealth for the long haul. Following these steps, I've added another $100k to my net worth in the last 3 years, so they do work. Certainly there is some value to reading all of these books, but I for one like to keep things simple. So let's get started! Here are my 10 steps to generating wealth.
- It Can be Done
- Pay Yourself First
- Give Some Away
- Create a Plan
- Execute the Plan
- Prepare for Emergencies
- Work Hard
- Find Mentors
- Enjoy Life
How do I get rich from stocks when the interest percentages are so small? Reviewed by Don Smith on 2:00:00 PM Rating: