Living paycheck to paycheck rather than saving and investing costs more than you think!
It is simply amazing that by contributing $268,000 of savings (an initial $10,000 investment plus a manageable $500 per month for 43 years), you can generate a whopping $4,720,000!
This is the power of compounding returns! Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional (and escalating) earnings over time.
In this example, 94% of the total wealth generated is attributable to the rates of returns generated via investing and wonders of compounding returns, and only a tiny 6% of the wealth generated is due to the actual savings rate of the individual!
Therefore, if you aren't saving anything at the moment, it is not just the $500 per month you are missing, but rather the 94% return you could receive on the saved funds!
According to a recent survey, approximately 62% of Australians admit to living paycheck to paycheck and are missing the opportunity to ever create financial freedom.
Don't let your hard work go to waste. If you have trouble saving and therefore troubling capitalising on the wonders of compounding returns, let's have a chat about obtaining the 94% of wealth you are currently missing out on!
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