Why we need Personal Investment?
It is very important in this present age that we all begin to take control of our financial situation and begin to plan for our future and the future of our children.
We can no longer rely on the government to issue an old pension when we retire. We cannot take for granted that at the end of our working life we will be financially cared for.
Personal Investment as different aspects
The world’s population is aging, thanks to a declining generation, and within 30 years there will be more retired people, compared to the elderly population, that it will be economically difficult for the government to provide any suitable source. financial assistance for older persons.
The government has noticed this, which is why they have introduced a compulsory superannuation scheme and are now beginning to offer financial incentives to those who have retired independently.
Most of us have never sat down and thought about the consequences of why this super compulsion was introduced and for many of us, it is a matter of too late. Even the youngest women in our society – who have the perfect working life ahead of them, are still unsure about a comfortable retirement.
Why is like that? It is because unfortunately even donations of less than 10% at present, a person on average who works less than 30 years, will still find himself trying to live on less than $ 20,000,00 a year in modern dollars.
You will see that I have been working for 30 years. This is another reason why women are especially disadvantaged. Firstly because they usually have to take ten years off work to raise children, secondly because women generally earn less than their male counterparts, and thirdly because a large number of women in Australia, for example, will never receive superannuation donations, before compulsory superannuation is introduced, so -they will not have any contributions made throughout their working life so far, giving them very little to go back to when they retire.
How to Create a Budget, Money Management and fast steps to Build Your Finance
Many women may have previously not considered the lack of superannuation donations as a problem, as it is possible that their husbands have been donating to super since they started working. Unfortunately, despite the high number of divorces in this country, it is unwise to rely on your partner’s superannuation to get you into your retirement age, and even if a large portion is offered in a place of residence – that it will be enough to provide a comfortable retirement at any time.
All of this is why women now, more than ever, need to start taking steps to create a sustainable source of income, which will grow to such a level so that they can provide a secure and happy future for themselves and their children.
It should be a source of unrelated income… that revenue is generated through the acquisition of income – not through our efforts.
One of the best sources for making this ongoing income trend is to start building an investment portfolio, and appropriately defined as bricks and mortar.
We need to start investing in cash-generating assets now so that they have time to grow and develop themselves so that we can be financially independent in our retirement years.
The most important idea you can understand when it comes to building a retirement fortune and building funds that can be donated to charities or helping your family are those combined benefits.
According to statistical principles, 72 is divided by the Compound Interest Rate of Return = Double Money Rate.
Example of Personal Investment
So if you have $ 1,000.00 invested in 10% interest, then the number of years that will take your money to double to $ 2,000.00 is 7.2. It will double four times in 14.4 years and cost eight times more than just 21 years.
If your money is invested at 7% interest, it will take about ten years to double the value. If it is planted at 5% it will double in just over fourteen years.
The two most important aspects of integration are the same: average or rate and second: time. The higher the scale and the longer the time something is left to combine, the final result will be greater. That’s why the sooner you start investing, the better for it will be for you.