People often talk themselves out of getting started with investing and wealth accumulation often asking: Do I have enough money to start investing? The amount that you start with is not the main point to consider. The main points to consider are deciding to get started and to do it on a consistent basis. Starting with only $50 a month is enough to make a difference. For example, if you only invested $50 every month while earning 5% annual interest, it can grow to over $74,000 in 40 years. If the interest earned is 10% per year, that $50 per month grows to almost $280,000 in 40 years (keep in mind that these interest rate examples are for illustration only and no guarantee of your individual performance). Imagine the possibilities.
How do I get there? Index Funds and Exchange Traded Funds (ETFs) are one solution. These funds are a good way to get started because these funds reduce the amount of risk with your investment by diversifying the investments in the fund. These funds also have lower investment minimums with lower costs that make them ideal for a low monthly automatic investment option. Click on the button below to read about Warren Buffet’s comments on using Index Funds.
Keep in mind, it’s not the amount that you start with, it’s the wealth that you build by getting started and doing it month after month. The decision is yours. It’s your move to decide on a better future. Paycheck to Wealth is here to help. Please contact us to get started.
Warren Buffet Comments about Using Index Funds (May 2021)