There is no other way to describe it but the more money you have, the more money you make. That’s why it’s so silly that people become perplexed by the growing wealth disparity of rich people getting richer and poor poorer. Rich people will always be getting richer. Rich people didn’t become rich people by being stupid so for the rest of the people out there, they best smarten up because the chips are getting stacked up against them.
Most people, when asked about investing money or putting capital to work say “I want to but I don’t have the cash”. The aspect of capital accumulation goes right over the head of the average people walking around. Savings accounts in today’s bizarre world only serve to separate the funds you have. One simply cannot get a return with these low interest rates. The ideal way to build capital is to put small amounts away timely in an investment with a reasonable amount of volatility and a nice yield. This is the only way to use the powerful force of compounding to your benefit.
Albert Einstein, smart guy (you might have heard of this dude, then again maybe you haven’t) believed that compounding interest is the most powerful force in the entire universe. Now it’s debated if he was the first to say this but we can rest assure he was of this belief that it is powerful. The reason for its power is compounding is infinite. The great part of fixed systematic withdrawals from a checking into an investment vehicle that has volatility and yield is the power of compounding is being utilized two fold. In this scenario one will receive interest on the interest as well as the benefit of dollar cost averaging. In this scenario the investment is being bought at highs and lows, so if the purchase is when the shares are low a higher quantity is received and they appreciate in value when they increase. The fact more shares are received also increases the amount of yield received. Its money growing on money it just keeps on multiplying exponentially.
With relatively small amount of money a person can get themselves on track to accumulating capital without having to think about. An amount of money that is your monthly credit card payment or phone bill invested once or twice a month can get you on the path to prosperity and making the concept of the American dream extremely more of reality for thy self.
Once a reasonable amount of money is achieved more investment and trading opportunities open up. That money can be put to work into those methods due to its greater value and the capital accumulation model can just be restarted over again. Amazing now someone with nothing is developing a portfolio and has multiple strategies implemented. Now someone may pursue this solo or with a trusted financial advisor, representative, consultant or whatever they wish to call themselves. The average “advisor” will not recommend this strategy to you so one who goes along with this or endorses this is not a complete bumbling imbecile. Dealing with a professional who gets it is the better move because weather you do it solo or with them fee’s will be charged regardless. The same fee weather solo or with professional assistance in the case of mutual funds. With the advisor you get advice with the fee instead of nothing. Better bang for your buck if you go through a financial professional.
Kill it today people. No excuses. The sun is shinning.
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