The Single Most Effective Way To Become Wealthy

Despite what you may have heard, you don’t have to be an expert in personal finance in order to become rich. You don’t need to receive a huge amount of income every month. You don’t even have to come from a wealthy family.

For the majority of millionaires, they have gotten to where they are today because they invest. In a Forbes article, it was revealed that 72% of the wealth of millionaires in Singapore is made through personal investments.

And it isn’t difficult to see why.

Suppose you invest just $10 per week:

After five years (assuming an average 8% return), you would have accumulated $3,295, and after 10 years, you would have $8,136. And that comes from simply setting aside slightly over a dollar a day.

Investing $50 a week would result in $16,473 after five years and $40,678 after 10 years. Imagine how much money would accumulate if you set aside a bit more each week, and did that for several years.

What’s more, if you earn $40,000 per year for example, you could potentially be richer than someone who earns $200,000 – by saving and investing more over time.

The Benefits Of Investing Early

Interestingly, if you invest early you could be getting more returns using less capital than if you were to start later.

Let’s illustrate using an example.

Imagine there are 2 individuals David Tan and Peter Lim. Both are age 35 this year and believe in the importance of investing and decide to set aside $300 each month (or $3,600 per year) to invest in a diversified investment fund that yield an average return of 12% every year

The difference between them is that David starts to invest early at age 35 and puts in $3600 yearly into the fund for the next 8 years. Whereas Peter only begins investing 8 years later at the age of 43 and puts in $3600 yearly until the fund matures.

Let’s take a look at what happens to the value of their investments when they both turn 60 years of age.

Believe it or not, David made $156,580.72 more than Peter, despite investing $36000 less in the investment fund!

So how did this happen? Here’s how.

By investing early, your investments have a longer time for the power of compounding to exponentially increase the value of your investments. Therefore, by starting early, you have a huge advantage compared to another investor who begins much later.

Another key take-away from this example, is the longer you wait to get started, the lesser the amount of money you make in the end!

Getting Started

Many of us fail to get started managing and investing our money because we’re intimidated or don’t know where to start. The thing is, investing is not as complicated or daunting as we make it out to be.

In fact, one of the best ways to get started is to simply start educating yourself in investing, one step at a time. A good way to begin is to read investment-related articles on a regular basis. You can source these free articles on a number of websites, including ours.

And of course, if you would like to cut short your learning curve, you could consider attending investment seminars organized by investment veterans.

About your author

<p><center>Team Wealth Academy</center>

Team Wealth Academy

Wealth Educators

Team Wealth Academy is a dynamic team who strongly believes in promoting financial literacy to everyone. Founded in 2004, the team has successfully organized the widely acclaimed Wealth Academy™ Program regularly for more than a decade now.


Any content in this presentation should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades to make. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Adam Khoo Learning Technologies Group Pte Ltd (AKLTG) and its associated trainers are not liable for any losses incurred from your investment activities. Past investment performance is not necessarily indicative of future performance, even if the same strategies are adopted. All forms of investments carry risks. Such activities may not be suitable for everyone. This course presentation is not meant to be a recommendation to buy or to sell securities nor an offer to buy or sell securities. The publishers of Adam Khoo and AKLTG are not brokers, dealers or registered investment advisors and do not attempt or intend to influence the purchase or sale of any security. AKLTG does not guarantee the accuracy or completeness of the information displayed. This is shared purely for educational purposes only. 

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *

Other articles you might be interested:

5 Costly Mistakes That Investors Make (Part 1)

In this post, I'll be talking about the 5 costly mistakes that most retail investors make that's costing them millions of dollars of potentially lost profits. But before that, let's do a quick review on what's happening in the markets. If…

Stock Market Cycles

We will be talking about how to use market cycles to achieve profitable investing today. The market goes through different phases and different strategies perform well under different market conditions. The market goes through 4 cycles: 1)…

Different Strategies for Different Stocks

Have you ever wondered what is the best strategy to use when you enter the stock market? Short or long term? Buy-and-Hold and dollar cost average or trend follow? Use only fundamental analysis or technical analysis? When is the best…

Profit from Stock Market Trend Following

Let's take a look at how you can profit from trend following the index. I always talk about how indices always go up in the long term.  If you look at the chart below, although it goes through ups and downs in the short and medium-term cycles,…

The Power of Stock Market Trends

In this post, we will be looking at the power of stock price trends to profit immensely. If you look at prices on a stock chart, it may seem like it is moving randomly but they often exhibit repeatable patterns that can be exploited. When…

The Bull Market in Stocks Continue! What's Next? (Part 2 of 2)

This is part two of the bull market continues. If you haven’t read the first part of this post, click here to read it and come back to continue. To find out where we're going from here, let's consult the charts and look the technicalities Here,…

The Bull Market in Stocks Continue! What's Next? (Part 1 of 2)

As all of you know, the bull market rampages on as we have foreseen, proving the naysayers and the purveyors of doom so wrong. Since the hit of the low last week, stock market is up 32% in the last two weeks, and in fact it's made back more…

The Bull Market in Stocks is Back!

I have got pretty tragic news on 10th April 2020. There’s been the death with someone that we all know really well. And it is the death of the bear. The bear market is officially dead. But the good news is the bull market is back. So…

4 Keys to Profitable Investing

In this post, I will be talking about the 4 Keys to Profitable Investing. If you want to achieve consistent profits while investing in the stock market, you must read this. What To Buy – 20% of success We only want to buy very good…