Hello everybody! Investment topic in conditions, when many people have low incomes, may be relevant. Therefore, you can put any numbers in the title of the post., but the point is, to earn a lot, with a small monthly income. For example, you can also ask: "How to earn 10 million. with salary 250 thousand.?»
The second question seems to be more real., than the first, but he is identical: amounts are simply multiplied by 10. If the second is real, then real and the first, ie. earn 1 million. with salary 25 thousand. In both cases, the ways to achieve the goal are identical - it takes time and adherence to the plan. (or strategy).
As with any big goal, it takes time, you can't just go and get rich, as many newcomers to the exchange and traders believe. That's why, to achieve the desired goal and really feel the fruits of your labors, it is necessary to allocate at least 5 years of life. Why exactly 5? More on this later.. Until then look at schedule on the picture. It shows the dynamics of capital growth of Warren Buffett. Considering, what he started to invest in 14 years, he became a billionaire only to 56 years and only after that the exponential growth of capital began, ie. compound interest work. Yes, his scale is different, but the essence is the same: for a great result, it takes a long time.
Warren Buffett's rise in Warren Buffett's fortune
Second, you need to stick to the plan. Firstly, a significant amount of money needs to be saved, but not 10%, how many people write, so that investments bring tangible results. Secondly, you need to outline your investment strategy, which will include the purpose of the investment, its terms, investment principles, actions during the rise and fall of the market, criteria for buying and selling assets in a portfolio. A written plan will allow you to stick to it.: do not panic in the event of a crisis and do not do stupid things during a strong market growth.
so, we know all this, have written your investment plan, we have 25 thousand rubles of salary on hand. Purpose - 1 million. rub. Where to begin? Personally, I would invest at least 5-10 thousand. rub. per month, because. with smaller amounts, the time frame for achieving the goal becomes unrealistically long, no matter how beautiful the headlines a la “investments 1 thousand rubles a month ".
Undoubtedly, there will be a question of survival on 15-20 thousand rubles per month. But there is no better incentive to earn more, than the problem of vital necessity, because. in most cases, low income is the result of a lack of incentives, motivation and laziness. And live on 15-20 thousand. a month is quite real, if a, certainly, you have no children and no loans. Again, the example is exaggerated and instead of numbers, you can put any values. Maybe, the, who earns 250 thousand. rub. it will also be difficult to reduce costs for 100 thousand. rub. (similarly 10 thousand. from 25 thousand).
Considering all this, when investing in 10 thousand. rub. per month, you can calculate the result of investment in the long term, setting the return on investment. Average annual growth of the stock exchange in Russia 16% per annum, however, there is also inflation, which averages 8%. Therefore, the real growth of the stock exchange capitalization is approximately equal to 8% in year, what we will take as the profitability of our investments.
Using a deposit calculator, Calculate, how many years will it take, to accumulate 1 million. rub. when investing 10 thousand. rub. per month at real rate 8% per annum. According to the calculation, it will take about 6,5 years or 77 Months. That is why I wrote above, that for investments you need to allocate at least 5 years.
Please note, that the sums in the example are real, not nominal, ie. adjusted for inflation. In other words, there is an accumulation 1 million. rub. in today's money, not in future.
The example is oversimplified., it lacks many parameters, which will be in reality. For example, in reality, funds can be invested in IIS, receiving additional income. There will also be dividends that, can be reinvested (in the example, By the way, I applied an annual interest reinvestment). This all increases profitability., but there are factors, reducing profitability. Among them are unsuccessful deals, fall of individual shares, bankruptcy of companies, bond defaults. All this also comprehends the investor. Considering all the pros and cons of investing, I also took the average growth of the entire stock market in 8% per annum taking into account average inflation.
The most interesting thing is, what is the accumulation of each subsequent million, it will take less and less time. For example, to accumulate 2 million, continuing to invest in our example, will not be required 77 Months, and 52 months or 4,3 of the year. 3 a million will be already in 38 months, etc. By analogy with Warren Buffett, who became a billionaire only through 40 years of investment, then when investing all 10 thousand. a month under 8% across 40 years will accumulate the amount in 32 427 thousand. rub., which will ensure a carefree old age or at least arrange a carefree life for your children.
Inflation-adjusted capital growth Inflation-adjusted capital growth
It could seem, that all this is very long and it is difficult to give up a lot now for the sake of the future. But the hardest part is only at the beginning, when there is still no passive income and reinvestment. In a couple of years, the amount has already accumulated, which will pay dividends, re-invested, so you won't need to save a lot from your monthly income.
It is worth giving up for a few years from excess consumption., to arrange an interesting pension for yourself, children - an independent life, and real wealth for grandchildren.
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