Save and invest
Saving your money and investing in any type of investment is a tried and proven method of accumulating wealth and living a financially comfortable life, even in retirement. Saving while investing is and should be a vital and essential part of one’s life regardless of the income you make, whether you decide to invest in real estate, bonds or the stock market. Despite the significance of saving money, many do not save their money and even less choose to invest but when it comes to doing the right decisions financially, saving money simply is not enough as you also need to invest.
There are many benefits to saving money, one is having a 4 to 6 month emergency fund on standby, which can cover things that are unexpected, such as home repairs, family emergencies, medical emergencies and much more. Having a savings account does not stop emergencies from happening, it will certainly help you through tough times while also feeling less stressed about the situation and will allow you avoid using any form of debt. With incurring debt, you would also be incurring high interest rates putting you further into debt. Due to the wide spread availability of credit cards and their high interest rates, many people choose to use credit cards to help them during tough times, which often carry interest in the double digits, with many credit cards having a 20% interest rate and if avoided, will save you thousands of dollars in the future.
Countless young individuals do not start saving money until their late twenties or early thirties and it is essential that individuals start saving money in the early years, the earlier the person starts to save, the better the persons financial wellbeing is by the time they are 40, 50 and retirement. The early years of savings are crucial to having a financial stable future and retirement. The reason why starting to save money early in life is mainly due to the compounding aspect of saving and investing your money.
The concept of compounding interest is quite simple and it is the process of re-investing your earnings from your previous investments (which can be investments in anything, stock market, bonds, or real estate for example) into new investments without spending the earnings on non-investments, magnifying your returns over the course of the investments life. It is important to have investments that have a compounding return aspect rather than a simple return.
To put the impact of compound interest into perspective, investing $10,000 in financial instrument which earns 20% per year for 30 years, would become worth $2,373,763, not including any additional yearly investments. If you compare this to $76122, which 7% annual would produce after 30 years, the difference is drastic. If you decide to invest $10,000 and add an additional $500 (only $42 per month) to the investment every year, the total you would have after 30 years is $3,082,892! We at wealthX help investors you achieve financial goals faster and quicker by having higher returns on investment up to 23% per year. The difference between the returns may not seem significant, but over the course many years, will amount to hundreds of thousands of dollars and thus, allowing you to retire earlier with more financial stability. Imagine how much your investments would be worth by retirement if you invested an initial $10,000 and then an additional $2,000 per year starting at age 20?
At wealthX, we have perfected algorithm whose sole purpose is to pick the best stocks based on many different factors and data. The algorithm that is used by wealthX is based on the investment strategy of Benjamin Graham and Warren Buffet, the true masters of investing, particularly value investing and have made fortunes worth billions.
The algorithm is designed to sort through tens of thousands of stocks from all categories, segments and industries and based on the data of each and every stock, picks the shares that offer the best return on investment which are currently overlooked by regular investors and most importantly, undervalued in the market. The algorithm we use does not only pick the best stock to invest in, it also gives advice to investors on what actions they should take, such as buy, hold or sell certain stocks in your portfolio.
wealthX is able to email you stock picks on any schedule you choose based on your investing budget and investment profile, you do not have to miss any investment advice from us, regardless of where you are. Just select how much you are ready to invest and wealthX does the rest.
You can choose to sort through thousands upon thousands of different stocks, wasting precious time or you could use the perfected algorithm of wealthX to sort, pick and recommend stocks to you based on investing principles and strategies of Benjamin Graham and Warren Buffet who have stood the test of time, becoming icons in the finance industry. No matter what stocks you choose to invest in or the amount that you choose as your first investment, the first steps to financial security is saving enough money to start investing. Without saving your money, you would be unable to have an investment portfolio and with that, be unable to achieve your goals of a financial secure future, stability in retirement and most importantly, peace of mind when it comes to all matters of your personal finances.
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Originally posted at https://blog.wealthx.ai/
