How Does Money Grow?

How Does Money Grow - TheIndianTrader

Money as I have seen, learned and preached is one thing most people just do not know how it works. Learning about money (Financial Education) is very important for anyone who even wishes to grow rich and wealthy in life.

The Robert Kiyosaki disciple

The author of the book ‘Rich Dad Poor Dad’ which has been in the New York Times bestsellers list for over six years – Robert Kiyosaki, is the person who completely changed my thinking as far as financial intelligence is concerned.

The things he talks about are so illuminating that I recommend you to not just read his book but consider it the Bible for Personal Finance.

If you want a glimpse of what I’m talking about, watch this interview of him – Poverty is Not An Accident

Now you must see why I consider myself as his disciple and also recommend you to be one.

Compound Interest

If there is one line that can make you understand and always remember the principles of money growth it’s this –

Compound interest is the eighth wonder of the world.

Albert Eintein

Here is an image comparison of a graph of compound interest and graph of warren buffet over the years for you to ponder on!

Warren Buffet himself said in The Snowball – My Wealth has come from a combination of living in America, some lucky genes and compound interest.

How to make money work for you?

You now know that we need to grow our money by compound interest and it can be done in many ways since we can get compound interest by investing in different instruments. For Example,

  • There is Fixed Deposit which gives a compound interest of about 7%.
  • Investing in Equities can give an interest of about 15% on average. 
  • Investments in commodities like metals can yield a CAGR return of approximately 8%.

Conclusion

The essence of all this is that YOU NEED TO INVEST if you want your money to work for you.

JUST EARNING and JUST SAVING money will NEVER make you rich. Period.

So go on and Invest..!!~

Like this post? Share with your friends!

Do post your questions, comments, or suggestions. Your questions will be answered and the suggestions will be taken seriously. Your feedback is important.

Cheers!

4.8/5 (4 Reviews)
Knowledge grows when shared!

Nishant

I started to learn about the stock market in 2014 after getting excited by watching the movie The Wolf of Wall Street and reading about people like Warren Buffet, George Soros, Steven A. Cohen who earned a lot of money in the stock market. I wanted to do it too. I wanted to learn how to do it.

Well, this is the point where the problem and my journey to solve it begins. After reading about a few market wizards I was certain about one thing that without knowledge this was not possible. The big problem was I had no prior knowledge of the stock market whatsoever. However, the bigger problem was I did know where I could get the required knowledge from. Neither the books helped initially (because there is no course or guide for this thing only stories and novels) nor I knew anyone who did not have a negative position about stock markets (or ‘Jua’ as they called it).

Still, I was stubborn enough to not listen to anyone and continue learning about the stock markets until I felt I was ready. Well, it took time but yes I did enter the stock markets with some knowledge, a plan and also a vision.

Success story..? Well, let’s see..!!~

2 comments

Subscribe to Blog via E-Mail

Stay tuned for new posts!