Everyone can grow life-changing wealth and have strong investment results over the long term.
Investing in stocks is one of the most important financial skills you need to master. History has shown that the earlier you start and the longer you stay invested in the market the better your investments will be. On average, stocks have given an annualized return of around 10%. At that rate, your investments would double every 7.2 years.
Let’s say you start with $10,000. After a 40 year career, that turns into at least $320K from doubling 5 times. That’s from a single $10,000 investment.
And, it is important to understand that you can’t accumulate wealth off just your salary. Savings and bonds won’t do it either, the return isn’t high enough to make an impact during your lifetime.
But, you should not invest in stocks in a vacuum. It is important to develop a financial road map to help you invest to meet a goal, whether this means sending the kids to college, retire well, buy a house, get that BMW or some marvelous combination thereof.
When you have a financial plan, you have a road map to guide your investing to help you reach your financial goals. The important thing is that you keep your investments on track in order to reach your financial goals.
Nick Murray may have said it best when he said,
“All financial success comes from acting on a plan. A lot of financial failures come from reacting to the market.”
Whether in real estate, stocks or even owning a business, you will never be able to achieve financial freedom without investing in assets and benefiting from the magic of compounding interest.
Few people will be able to save enough for a secure retirement without investing.
To read more: https://www.iwillteachyoutoberich.com/blog/make-money-in-stocks/
Sources:
- https://www.forbes.com/sites/davidrae/2020/03/10/4-investor-mistakes/#129fd4df15bb
- https://www.forbes.com/sites/davidrae/2020/03/22/is-now-the-time-to-buy-stocks/#3fca8a8d1829