Would you like to learn how to build wealth? I bet the answer is yes!
The idea of being rich is actually very exciting. And you know, the best part about it is that, if you’re young, you’re even better positioned to grow your wealth over time.
Sadly, in this day and age, a lot of people want shortcuts to money and this makes us very vulnerable and at risk of being scammed.
What we always forget is that building wealth doesn’t always have to be risky if only we exercise some patience and apply this trick which will be shared in the next few lines.
So, what is this trick to building wealth that we’re raving about?
Ladies and gentlemen, it is compound interest o. 🥳
In the words of Albert Einstein, compound interest is the eighth wonder of the world. And boy, do we agree!
To break it down, compound interest is simply money that you earn on what you had previously saved or invested. In other words, it is interest earned on interest.
Rather than letting money lie fallow out of risk of being scammed, you can make your money work for you through compound interest.
This is how it works:
Say you’re employed at 25 for example, and you plan to retire at 60, it simply means you have only 35 years to grow wealth with your salary. If you take N500k out of your annual salary and put it in one ‘Ghana-must-go’ every year for 35 years, you’ll have saved N17.5m.
However, if you continue to save that same 500k every year at 6% per annum on the Zimvest Aspire savings platform, always reinvesting the value each year at maturity, you would have saved up to N61m in 35 years. Now spot the difference!
The idea behind compound interest is to continue to reinvest or re-save not just your capital but your interest so that your interest also generates some more money.
Another key thing to note about compound interest is time. Time is literally like a sister to compound interest. This is because the longer your period of savings or investment, the more your chances of growing your money exponentially.
This is why compound interest is a powerful tool for younger people to take advantage of as early as possible and build wealth.
Although 6% may seem very little interest-wise, it starts to make sense over the years as you continue to reinvest. 35 years is obviously a long period of time, but when it comes to building wealth, patience is a very important factor. Remember, Rome wasn’t built in a day.
And that is it, the earlier you start sending your money on errands, the higher your chances of reaping exponential rewards.
Start now, sign up on Zimvest. Don’t say we didn’t do anything for you! 😉