One of the key ingredients to building wealth is to start as early as possible.
Below I share 3 smart reasons why you should save money every month.
1. You Start The Habit of Saving.
Saving money is basic but in reality it is very difficult to implement.
Common excuses: i don’t have enough money to save, i’ll wait till get a higher income, i’ll save if I get bonus
My suggestion is to start small. If you can put aside $10 daily, it means you can save $300 monthly.
2. The Power of Compounding.
If you invest $300 monthly and gain 10% interest per year, you’ll have $4000 by end of the year.
And after 20 years, you’ll have $200,000.
3. Dollar Cost Averaging (DCA)
If you invest in mutual fund, DCA is a simple an yet effective strategy that will help you grow your wealth. As market is always up and down, DCA helps to take the fear out of investing and you dont need to time the market.
When market up, you will benefit from the capital gain of fund’s price. If the market down, you will benefit from lower price and get more units of that fund.
Small thing is better than nothing.
Start saving money today and have a peace of mind in future.