There are 2 things that my Dad didn’t teach me, though I wish he had. They were:
1) How to make money.
2) The power of compound interest.
My Dad owned his own welding business for nearly 50 years. He always lived within his means while still affording to put 4 of his 6 kids through college. When he wanted something new, he usually built it by hand. That included a home, pontoon boat and motor home just to name a few.
When my Dad decided to retire at age 70 thereabouts, he had $30,000 in the bank. But by the time he died at age 87, he had accumulated over $500,000.
So how did he go from $30K to over $500K?
He did that because 1) he learned early on how to make money, and 2) he took advantage of compound interest.
So why am I telling you this story?
I tell you this because you’re wanting more out of life for yourself and your family. If you didn’t, you wouldn’t be on my newsletter list. Nor would you be building a network marketing business, or mlm business.
You’re trying to find a way to create that extra income for whatever reason. And because of that, I’m sharing these 2 tips with you.
Learn How To Make Money.
As an entrepreneur, you have to learn how to make money. Maybe it’s with the products and services your company provides. Or maybe there’s some talent you have that you haven’t yet capitalized on.
To make money, you have to look at what people “need”, then provide it to them. You can have the best product or service in the world, but if there’s no real broad consumer need for it, then you won’t make much money. The greater the need, the greater potential for income.
Part of why my Dad was able to go from $30K to more than $500K had to do with investing. He invested in what consumers needed. He saw the demand for housing and he invested in real estate stocks that performed well for him.
Learn The Power of Compound Interest.
He also took advantage of compound interest.
What is “compound interest”?
Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. Think of compound interest as “interest on interest”.
By taking advantage of compound interest, you could literally add hundreds of thousands of dollars to your lifestyle by the time you decide to stop working.
Here’s an example..
Let’s say you invest $6,000 per year ($500 per month) from the ages of 18-45. During those 27 years, you would have put away a total of $162,000. While this is a nice sum, it isn’t exactly retirement money. However without doing anything more other than smartly investing your mo’ney with compound interest, your $162,000 grows to $672,000 at age 45!
Compound interest is something I’ve been explaining to my teenagers. I’m encouraging them to invest as much as they can while they’re still teenagers, so they can retire at an early age. They don’t quite understand what retirement means. But they do understand what it means to be young with money in hand and time to spend it.
Well, that’s it for this newsletter. Put these tips to work starting today! Thanks for reading.
To your success,