Most people have undoubtedly heard this before, but few ever sit down and figure out how to make it work in their own personal finances. This is especially true of internet marketers who are bombarded by promises of easy and immediate riches.
Plan For The Long-Term
However, real wealth is a long-term proposition. It has little appeal to people seduced by the promises of easy money online.
Unfortunately, these are only promises that seldom, if ever, materialize. The sad truth is only a small percentage of people make good money online, and do so consistently.
Compound Your Savings
But regardless of how you earn your income, the power of compound interest is yours to use and prosper from. It begins with taking a long-term view of your financial dreams.
Set Money Aside Daily
Everyday, starting today, you have the opportunity to make your personal wealth grow. All it takes is a commitment to setting aside a specific amount of money every single day, even if it is only one dollar a day, but never wavering in this commitment. At the end of the first month you would have $30 set aside.
During those first 30 days, you will have the opportunity to do your research about where to invest the money you are setting aside, or at least getting some general ideas for further study.
Set Aside 20% Of Your Earnings
Chances are that you will see $1 as a trivial amount to set aside, and will commit to setting aside, say, $3 per day on the second month. This will give you $90 dollars in the second month, plus the $30 of the first month for a 60 day total of $120. To this amount you would have to add the interest earned on your first 60 days.
Do The Math
You should allow yourself the eye-opening excitement of making the calculations of how quickly your money set aside continues to grow, and how much more is added by the compound interest your savings earn for you. This is your money working for you, making you more money.
Assuming you increased your daily savings to $10 per day, and your investment yielded only 5% you would have almost half a million dollars at the end of 40 years.
Warren Buffett’s Secret
This is basically how Warren Buffett made his multi-billion dollar fortune. It has taken him over 40 years to do this, but do you think he might have made his first million at a much younger age? It was all made possible by the power of compounding.
In the real world, you may have a smaller amount to set aside at first, but you most likely would be able to increase the daily sum set aside by a significant amount as your regular income grows over time. This would result in much greater wealth accumulation in, say 10 years, 15 years, and so on, depending on your personal situation.
Be A Wealth Builder
Regardless of your personal circumstances, your wealth can grow beyond any amount which the overwhelming majority of people ever experience in their lifetime.
The most exciting fact is that you can start at any age. You can begin today.
If you are young, time will be your powerful ally. But if you are older, you will most likely have a higher income thus being able to set aside a larger amount of money per day. This will compensate for the shorter time in which to set your wealth building machine into high gear.
In conclusion, you can start implementing this “secret” of the super rich at any age. If you want to be truly wealthy you can do this by starting today.