Albert Einstein once said that, "The Compound interest is the greatest Force in the Universe". He also said that. "The Compound interest is the 8th wonder".
Investment is not only the game of money but it's the game of MONEY & TIME both. To build wealth and become financially stressful, you don't have to just invest lots of money but you will also have to invest lots of time to work compound interest work better in favor of you.
People who started early have invested more time and time is the important element of success of financial planning.
Lets see the formula of compound interest.
The person who starts investing at the age of 25 will invest 10 years more time than the person who started investing at the age of 35 and 20 years more time than those who start investing at the age of 45. The only way to become successful in the game of financial planning is you START EARLY & invest more time.
People who started early have invested more time and time is the important element of success of financial planning.
Lets see the formula of compound interest.
Consider the following four investors ages 25 – 55. Each invests Rs.1 Lakh per year in Equity Mutual Funds and earns 20% annually.
At age 60:
- The investor who started at age 25 has over Rs.35 Crores (In 35 years)
- The investor who started at age 35 has just over Rs.5 Crores (In 25 years)
- The investor who started at age 45 has just Rs.15 Lakhs (In 15 years)
- The investor who started at age 55 has just Rs.9 Lakhs (In 5 years)
The earlier you start the less you have to invest to reach your financial goal.
The person who starts investing at the age of 25 will invest 10 years more time than the person who started investing at the age of 35 and 20 years more time than those who start investing at the age of 45. The only way to become successful in the game of financial planning is you START EARLY & invest more time.
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