When I am still young, how can I become rich on my own? One can also become rich through inheritance. Therefore, I am not considering the inherited property. here, we give the best ideas on How to become Rich while you Are still Young. How do you generate money on your own? It is not easy. You have to work really hard. If luck favors you, you will soon become rich. Luck, I mean favorable conditions.
Heart of Becoming Rich
The law of compounding rate of growth and the starting point of your trajectory. Zero never gives you growth. Whatever growth rate you apply is always zero. First of all, you have to enter a positive zone. The initial amount is the biggest influence on your wealth. Therefore, you must earn this large initial amount as soon as possible.
For example, you invest $ 1 at a compounded rate of 10%, after about 14 years it will become $ 4, at the end of 21.5 years it will become $ 8. You will be rich with $ 8. At the same time, if your initial investment is $ 1,000,000, you will get $ 8,000,000 at the end of 21.5 years at a 10% compound rate (800% of the initial investment). The coordinate point is very important from where your trajectory is.
Wise Investment will make you Rich
If you are able to achieve a high rate of growth you will soon prosper. In the previous example, we considered only 10% mixed growth. In fact, you can get a higher rate if you invest your money wisely. When I was younger, I invested in a mutual fund (tax scheme, 3-year lock-in period) to provide tax relief. After 3 years, the NAV was 500% of the initial offering price. I received $ 25,000. If I had invested more in this investment, I would have been 28 years old.
It was a favorable time for life. It is rare in life. You may find such favorable circumstances 3 or 4 times in your life. 3 or 4, because you missed something in the past and you might remember something else in the future. Identifying such situations is the key to becoming rich. In general, young people will miss the first chance or even more as I missed.so, If your mind is engaged in non-financial activities, you will quickly miss opportunities. Only experience will teach you.
Short Term Investments will not make you Prosper
Time is another important decision-making factor. Accumulation takes its time. The time and high rate of compound growth rate will make you rich. If you want to prosper in 7 years, then the growth rate should be very high. If your goal is $ 1,000,000,000 and you now only have $ 100, then you have to increase it 10 times each year to reach your goal.
This is an extraordinary growth rate. So it is quite difficult to become a billionaire with an investment of a small amount says $ 100. The probability is very, very low. Therefore, do not set unrealistic goals. Allow time to accumulate your wealth.
People around you are another important Factor
99% of the people around you will make you spend your money. My father asked me for money to invest in the plantation crop. I gave him the money I asked for. After 1 year he told me that the entire crop was sown by the monsoon wind. The return he received was zero. My money also went into the air.
My uncle advised me to buy a car at the age of 25. because I did not have enough money to buy a car. I had to borrow money. I would have got a bank loan easily. Somehow, I deferred the idea of buying a car at that time which was really an unwanted thing. That decision was good and made me rich now.
A neighbor of mine was ready to sell his house and offered to price it for me. I had no money at that time. I would have got a bank loan for the remaining amount. Somehow, I declined the offer. It was a really, really bad decision that I made in my life. I would have gained 100000% of that investment by now. This is another favorable situation that I miss.
Do not Invest in the Stock Market without Learning the Basics
Once I bought 100 shares of a company (IT). Each share cost me 1200. Within 6 months, the market price reached 3600. I did not sell thinking that it was a price stock. I decided to hold on for a long time. The following month, it started coming down due to some headwinds. The entire stock market was nose-diving. My stock reached the bottom of the issued price of 40 or 45. I lost all my money. Still, I did not sell it because there was nothing to lose more. hence, I waited and patiently waited for patient-year to see the price for 5 years. During this period, the company was correcting and consolidating its market share. I bought more shares of the same company. After 10 years, it is now trading at its previous peak.
Another stock I invested with mentioned around 43, did not climb even to 100 in the span of 10 years. Over the next 3 years, it climbed to 250. In the next 3 years, it has crossed 1000 and is now trading at around 1500.
Nevertheless, there are other stocks that were not able to raise their head after the collapse.
This is how the stock markets behave. There are reasons to behave like this. You have to learn the basics.
Thus, My advice is a mindful life. Study your surroundings and look for favorable conditions. Invest your time and money to improve yourself which will always help you to get rich. A favorable situation is enough to make you rich. Be warned Don’t do it.
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