Recently I was involved in a conversation regarding the stock market. As the person talking to me kept making assumptions of how risky investing was I finally requested an opportunity to speak.
I began by saying the person had mixed up investing with gambling. That investing is placing your money in a stock with the expectation of making it grow while gambling is a whim or a game of chance.
While I had the persons attention I continued to speak; Over the years I have recognized that my high net worth clients keep their expenses low and stay focused on the long term. The key being they recognized and distinguished between WANTS and NEEDs. They know a want is a desire to possess where a need is essential to one’s well-being. They receive their wants but only after they have planned and saved for them.
Secondly, they understood that building wealth begins with a belief system. They learned the process and implemented it – Spend less than you make and save the difference.
Third, discovered the power of compound interest. The easiest way to see the power of compound interest is the rule of 72. The rule is: Years required to double your investment = 72 ÷ compound annual interest rate. Example: if you earn 8% on your money than it can double in 9 years or you earn 10% it will be 7.2 years.
Appreciation of compound interest is one of the reasons my clients continue to invest.
Remember, (KISS) Keep It Simple Stupid
Let’s have an intelligent conversation
Let’s get together and I will help you experience — and understand — how your money will grow in the world of long-term investments. Let me show you how much fun it can be! Call me, Vicki L Wille, today at 702-878-9562.
Or click the button below and…