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..!!~

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Nishant

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