People who have become rich must know “the secret to becoming rich” that ordinary people do not know.
Many people may think this way.
So, let’s start with the following question.
“How is an asset created?”
Let me give you an example of how an asset can be created.
For example, if you put away $400 every month without fail,
In 30 years, your savings will be $150,000.
If the $400 was invested at 6% compound interest per year, the savings would be $420,000 in 30 years.
If you continue to invest it for 40 years, the principal amount of $200,000 becomes $82,000.
This is called the “compounding effect.
By investing the principal and incorporating the interest generated into the principal, the money will increase at an accelerated rate.
In this way, asset building does not require special skills or high-yield products.
What is important in asset building is to “invest your money over time and continuously.
By investing funds over a long period of time, it is possible to adjust to market price fluctuations to a certain extent.
If the start of asset building is delayed by one year, the loss will be 2670.
If the start of asset building is delayed by one year, the loss will be $26,700,
If you delay for 2 years, you will lose $51,400, and if you delay for 5 years, you will lose $12,000,000,
If you delay for 5 years, you will lose $120,000,
If you delay the start of asset formation for one year, you will lose 2,670,000 yen.
To make time your friend, start asset building as early as possible.
The most important thing is to start as early as possible.