Oct 26, 2016
Learn 3 reasons why reduced spending and savings are not going to make you wealthy.
You still need to invest!
Have you checked out the Creating Wealth podcast yet with Jason
Hartman? It’s full of amazing information and over 700 podcasts
about real estate investing. If you like this podcast, you’ll like
that one too.
I heard it from financial podcasters and bloggers - building wealth is about spending less and saving more.
That is only true if you make multiple hundreds of thousands of dollars and can save $1 million in a few years.
For most people, that’s not realistic!
If you’re making $75,000, paying for a house, car a spouse and 2 kids, there is NO WAY you are going to save yourself to wealth!
You can’t possibly save enough to become wealthy.
Do you want to be a smart spender - yes!
Can you “frugal” your way to wealth? Not in most cases.
But you can invest your way to wealth.
Most “experts” won’t tell you that.
Wealth = Compounding.
There are only 3 factors that are part of the wealth building formula.
Time. How many years you have to invest.
Amount. How much money you have to invest. Capital.
Compounding rate. What rate you can compound at.
$100,000 15 years, 8% = $317,216
If increase to 30 years:
$100,000, 30 years, 8% = $1,006,265
$100,000, 15 years, 18% = $1,197,374
$100,000, 30 years, 18% = $ 14,337,063
Where can you find that rate of return?
You know I’m a fan of IBD, the IDB 50 has a 17.9% rate of return!
On podcast #195, I talked about the St. Agnes school of 8th
that made 25% over 2 years by using IBD.
What about since 2006 - 2016? How about compounding rates?
Is it possible to find a company like these? IMHO yes. They
leave tracks and
they are leaders. Maybe even in IBD 50.
Or you can start your own business. Businesses can grow at high compounding rates too. Sometimes in the thousands of percent. Check out some of the fastest growing companies in America and their compounding rates.
That’s why 77% of wealth is creating by owning a business, including being a professional (doctor, lawyer, etc.).
To get “11 Quick Financial Tips to Boost Your Wealth”, go to www.lindapjones.com.