dibya’s blogosphere

We were all taught that it is important to gain a good education and to learn valuable skills to enter the job force and start a good career. But here’s what few of us have learned: more important than having a good job is learning how to make your money work for you. Consider this: if you can save $500k, and you average 10% on your investment portfolio, you will gain $50k annually without doing anything other than having the money. $2 million will earn you $200k per year (earning 10%). $10 million will earn $1 million per year. The more you invest, the more you’ll make, without lifting a finger (well, other than managing your money, of course).

Sure it’s important to have a good job. But it’s even more important to be investing your money, no matter how much you’re making. If the goal is financial security and freedom, it doesn’t take rocket science; just a little discipline and sacrifice early on. And what you’ll gain is so much more than what you could buy today.

One last note: $1 at age 18 can’t get you more than a coke, or maybe a dollar menu burger. But $1 at age 18 is worth $54 at age 60 (assuming 10% again). Keep that in mind the next time you stop at Starbucks. Your cup of joe is actually taking more than $150 out of your retirement fund.