Friday, February 4, 2011

Chapter 2 - Invest early to make sure you can enjoy party every week.

More you save invest today more you have to spend tomorrow.
See the illustration to understand this bizarre fact.

You can see that Mr Saver started saving immediately as soon as he started earning and invested 50000 per year until the age of 25 years.

Another hand Mr Party Goer started earning same time but started investment and saving for future at the age of 25 years. He saved same amount 50000 per year for total 36 years. Mr party goer invested more in longer period but he has less amount to spend at age of 30 , 40 ,50 and 60  than the amount Mr Saver has.

As you can see in the above table even if Mr Party Goer invest more amount per year (75000) than also he will be having  less amount to spend at 30 ,40 ,50 and 60 .

More wise tips in another posts . Keep reading.

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