Today we will discuss the importance of being consistent with your investing. Let us start with a little math question. Don’t worry this one is not rocket science, and we will give you the answer.
Max invested $100,000 in an investment with an interest rate of 10% for 5 years and Jodi invested $10,000 in the same investment, but consistently added $10,000 monthly over the 5-year period. Who do you think will have more money?
The answer is Jodi. Jodi investment was $748,717.10 compared to Max investment of $161,051.00
This is the power of being consistent with your investing and having a long-term outlook.
Often times persons may start their investment journey putting down a lump sum and think it is enough. However, being consistent with your investing allows you to build wealth in a real way.
Let me say that again…..
…being consistent with your investing allows you to build wealth in a real way.
Now that you know the important role of being consistent in adding to your investment, we are going to share a few tips to help you build this extremely crucial financial habit:
- Determine an amount that you can add to your investment every month, remember this amount doesn’t have to be a lot of money, but you must set an amount
- Now that you have your magic number, set up an automatic transfer where the money is moved out of your checking account or savings account to your investment account (for example your stock account)
- Lastly, use the money to make your investments
The key to building real wealth is to be consistent by putting money aside every month towards a ‘rich’ future. Is investing on your radar for this year?