Chapter 8. You Don’t Need Money to Make Money
people work their whole lives to earn money; few ever really figure out how to make money work for them . Pay Yourself First Here is a simple lesson to remember; get control of your money. If you make $500, $1,000, $5,000, $50,000 or $500,000 per month, pay yourself 10% minimum to put towards building freedom first. So many people pay everyone else and then live on what’s left over. Seems like a pretty sad way to live life, don’t you think? Make it a habit. Find a way to put 10% towards your future. You are worth it! Here’s a simple example of the payoff you’ll get. Let’s say you take just $30 dollars a month—$1 a day—and your goal is a mil- lion dollars. What does the average person do? They put their money in a traditional bank that pays 2-4% returns. Maybe they put it in a CD or something. At just $30 per month at 3% interest (which is likely lower than inflation), you’d earn a million dollars after about 150 years. Invest Wisely and Often On the other hand, if you took the same $30 per month and found a way to get at least 10% interest compounded, you would have a million dollars in less than 60 years. This is where you need to take action and look for things like mutual funds. Mutual funds are simply a collection of funds, typically groupings of company stocks, bonds, and financial instruments that diversify your money for optimal growth and minimal risk. A money manager oversees and manages the variety of funds purchased and sold for their members. Good mutual funds have been around for ten years or more, have consistent track records, and show long term averages of 10% or greater. You simply deposit your money into the account, and you have the opportunity to benefit from compounded interest. If
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