Empowerment Life Coach
Bibi Bunmi Apampa
Empowerment Life Coach Financial Empowerment Success In Life Wealth Creation Business Strategies Personal Development War On Debt View Cart Home About B.Apampa Seminars & Services Coaching Articles Christian Free gift Contact
Unstopable Confidence
Unstoppable
Confidence

$19.99

How to get what you want in your life?
How To Get
What You Want In Life

$19.99

How To Manage your lost Career
How To Manage Your
Lost Career

$19.99

View More
Newsletter Signup
Sign up for free subscription to newsletter on " Success in Life Strategies"
Name:
Email:
Articles
 

4.FINANCIAL/WEALTH ACCUMULATION PLAN

1.Make a decision to become financially independent – step across a mental line in your mind

2.Set a goal to achieve a certain amount of money by a certain date then set sub-goals 2years, 1year, 6months, 1month

3.Make detailed monthly plans of how much you are going to earn what you are going to achieve and what you are going to save or invest.

Savings – is what you put aside for a rainy day

Investment – what one does at the expense of today in order to enjoy tomorrow

4.Break Parkinson law – expenses rise to meet income. Spend 10% - 20% less than you earn

5.Carefully save & invest the money you are putting away – 1st half of becoming wealthy is to earn the money 2nd most important half is to hold unto it once you earn it

6.Study, research and investigate financial opportunities carefully. Don’t rush, avoid any kind of get rich quick schemes. Making money is like digging in the sand with a pin. Losing money is like pouring water on sand

7.Get out of debt and stay out of debt – owing money is a major source of stress, it undermines your mental, emotional and physical health

8.Continually look for ways to increase and add value to what you do

9.Never give up – wealth accumulation is a steady process, it requires tremendous persistency and consistency

10.Be a continual channel of blessing – make other people’s smaller dreams come to pass, God will make your dream to come to pass. Law of sowing and reaping.

1.Remember poor people spend their income and SAVE what is left. Rich people INVEST their income and spend what is left

5. The Miracle Of Compound Returns

The eighth wonder of the world is said to be the miracle of compound Interest. The first step towards wealth is sorting out your finances, and the first step towards sorting out your finances is understanding the miracle of compound returns. Basically, this is about interest, and how earning a slightly higher rate of interest can make a massive difference to the amount of money you end up with in the long run. How does it work

You earn some interest on your savings

Next year, you earn interest on that interest

The year after, you earn interest on the interest on the interest

The year after that... and so on...

With compound returns, interest earned is put into the pot, rather than set aside, which means the pot keeps getting bigger. The bigger the pot of money, the more interest the money earns... and the more interest that gets put back in. Over the long term, this can really add up! Compound returns are driven by two factors: rate and time.

Rate

More than anything else, interest rates determine how quickly and how much your savings grow.

<>< mce_serialized="1"><>


Investment value at these interest rates

1%

3%

5%

7.5%

Age 20

0

0

0

0

Age 30

£12,626

£14,009

£15,598

£17,904

Age 40

£26,578

£32,912

£41,275

£55,719

Age 50

£41,998

£58,419

£83,573

£135,587

Age 60

£59,038

£92,837

£153,238

£304,272

Even small differences in the rate of return have a huge impact on the amount of interest earned in later years. The two percent points between the 3% account and the 5% account yield a difference of over £60,000 after thirty years of saving - that's over £30,000 a percent point.

Time

Another major factor in the growth of an investment is time - how long your investment appreciates interest. As a rule, the longer your investment sits around and gathers interest, the better:

<>< mce_serialized="1"><> <>< mce_serialized="1"><>


Age started saving

20

30

35

40

Value of
savings at
different
ages

30

£15,848

£0

£0

£0

35

£27,188

£6,962

£0

£0

40

£41,661

£15,847

£6,962

£0

50

£83,710

£41,662

£15,847

£6,962

60

£152,204

£83,710

£41,662

£15,847

What you should learn from this table: the sooner you start investing, the better to take advantage of the miracle of compound interest.

6.Make Your Child A Millionaire

One of the best things you can do for your kids is to show them how money works: how to make money, how to manage it, and how to make it work for them. The best way to do this is to invest for them while they are young, slowly building a solid financial foundation for them to stand on

Making your child a millionaire is about ensuring your child is able to enter adulthood without serious financial worries, and with the advantages money can buy, and the kind of financial sense - instilled in them by you - that ensures a healthy relationship with their pennies and pounds for a long time to come. Granted, with inflation and without guaranteed rates of growth, you may not reach a million pounds by the time your children become adults. No matter - by then, they'll be finance-savvy savers and investors themselves, building on the foundation you began.

How to invest for your children

Stock market, stock market, stock market! The long-term return on investment in the UK stock market has been around 11% per annum since 1918. Take a look at what might happen if you invest just £25 each month on your child's behalf, and what might happen if you leave it up to them to start on their own:

<>< mce_serialized="1"><>

Investing for your children

Child's age

Invest £25pm until 21 then stop

Start investing £100pm from age 21

0-21

£24,064

£ 0

21-60

£1,409,189

£696,991

Total invested:

£6,300

£46,800

With charges, inflation, and tax, these numbers aren't exact, but if you put £25 a month into a tracker fund until your child's twenty-first, and the historical return had been achieved, it would then be worth about £24,064. Hand the fund over to your child to sit and accrue compound interest, and by the time they reach 60, a total outlay of £6,300 would be worth just under one and a half a million pounds. Contrast this to the outcome of investing £100 a month from age twenty-one to 60 and the numbers speak for themselves.

Don't be overly cautious. With long-term investments, playing it safe is playing to lose. Over a long period, let the numbers be your guide - and those numbers tell us the stock market is the best bet for long-term investments. Before you settle for a low-grade savings account, consider again the historic return on investment offered by the stock market, and look at the alternatives on a £250 investment:

Empowerment Life Coach
Bibi Bunmi Apampa
Empowerment Life Coach Financial Empowerment Success In Life Wealth Creation Business Strategies Personal Development War On Debt View Cart Home About B.Apampa Seminars & Services Coaching Articles Christian Free gift Contact
Unstopable Confidence
Unstoppable
Confidence

$19.99

How to get what you want in your life?
How To Get
What You Want In Life

$19.99

How To Manage your lost Career
How To Manage Your
Lost Career

$19.99

View More
Newsletter Signup
Sign up for free subscription to newsletter on " Success in Life Strategies"
Name:
Email:
Articles
 

4.FINANCIAL/WEALTH ACCUMULATION PLAN

1.Make a decision to become financially independent – step across a mental line in your mind

2.Set a goal to achieve a certain amount of money by a certain date then set sub-goals 2years, 1year, 6months, 1month

3.Make detailed monthly plans of how much you are going to earn what you are going to achieve and what you are going to save or invest.

Savings – is what you put aside for a rainy day

Investment – what one does at the expense of today in order to enjoy tomorrow

4.Break Parkinson law – expenses rise to meet income. Spend 10% - 20% less than you earn

5.Carefully save & invest the money you are putting away – 1st half of becoming wealthy is to earn the money 2nd most important half is to hold unto it once you earn it

6.Study, research and investigate financial opportunities carefully. Don’t rush, avoid any kind of get rich quick schemes. Making money is like digging in the sand with a pin. Losing money is like pouring water on sand

7.Get out of debt and stay out of debt – owing money is a major source of stress, it undermines your mental, emotional and physical health

8.Continually look for ways to increase and add value to what you do

9.Never give up – wealth accumulation is a steady process, it requires tremendous persistency and consistency

10.Be a continual channel of blessing – make other people’s smaller dreams come to pass, God will make your dream to come to pass. Law of sowing and reaping.

1.Remember poor people spend their income and SAVE what is left. Rich people INVEST their income and spend what is left

5. The Miracle Of Compound Returns

The eighth wonder of the world is said to be the miracle of compound Interest. The first step towards wealth is sorting out your finances, and the first step towards sorting out your finances is understanding the miracle of compound returns. Basically, this is about interest, and how earning a slightly higher rate of interest can make a massive difference to the amount of money you end up with in the long run. How does it work

You earn some interest on your savings

Next year, you earn interest on that interest

The year after, you earn interest on the interest on the interest

The year after that... and so on...

With compound returns, interest earned is put into the pot, rather than set aside, which means the pot keeps getting bigger. The bigger the pot of money, the more interest the money earns... and the more interest that gets put back in. Over the long term, this can really add up! Compound returns are driven by two factors: rate and time.

Rate

More than anything else, interest rates determine how quickly and how much your savings grow.

<>< mce_serialized="1"><>


Investment value at these interest rates

1%

3%

5%

7.5%

Age 20

0

0

0

0

Age 30

£12,626

£14,009

£15,598

£17,904

Age 40

£26,578

£32,912

£41,275

£55,719

Age 50

£41,998

£58,419

£83,573

£135,587

Age 60

£59,038

£92,837

£153,238

£304,272

Even small differences in the rate of return have a huge impact on the amount of interest earned in later years. The two percent points between the 3% account and the 5% account yield a difference of over £60,000 after thirty years of saving - that's over £30,000 a percent point.

Time

Another major factor in the growth of an investment is time - how long your investment appreciates interest. As a rule, the longer your investment sits around and gathers interest, the better:

<>< mce_serialized="1"><> <>< mce_serialized="1"><>


Age started saving

20

30

35

40

Value of
savings at
different
ages

30

£15,848

£0

£0

£0

35

£27,188

£6,962

£0

£0

40

£41,661

£15,847

£6,962

£0

50

£83,710

£41,662

£15,847

£6,962

60

£152,204

£83,710

£41,662

£15,847

What you should learn from this table: the sooner you start investing, the better to take advantage of the miracle of compound interest.

6.Make Your Child A Millionaire

One of the best things you can do for your kids is to show them how money works: how to make money, how to manage it, and how to make it work for them. The best way to do this is to invest for them while they are young, slowly building a solid financial foundation for them to stand on

Making your child a millionaire is about ensuring your child is able to enter adulthood without serious financial worries, and with the advantages money can buy, and the kind of financial sense - instilled in them by you - that ensures a healthy relationship with their pennies and pounds for a long time to come. Granted, with inflation and without guaranteed rates of growth, you may not reach a million pounds by the time your children become adults. No matter - by then, they'll be finance-savvy savers and investors themselves, building on the foundation you began.

How to invest for your children

Stock market, stock market, stock market! The long-term return on investment in the UK stock market has been around 11% per annum since 1918. Take a look at what might happen if you invest just £25 each month on your child's behalf, and what might happen if you leave it up to them to start on their own:

<>< mce_serialized="1"><>

Investing for your children

Child's age

Invest £25pm until 21 then stop

Start investing £100pm from age 21

0-21

£24,064

£ 0

21-60

£1,409,189

£696,991

Total invested:

£6,300

£46,800

With charges, inflation, and tax, these numbers aren't exact, but if you put £25 a month into a tracker fund until your child's twenty-first, and the historical return had been achieved, it would then be worth about £24,064. Hand the fund over to your child to sit and accrue compound interest, and by the time they reach 60, a total outlay of £6,300 would be worth just under one and a half a million pounds. Contrast this to the outcome of investing £100 a month from age twenty-one to 60 and the numbers speak for themselves.

Don't be overly cautious. With long-term investments, playing it safe is playing to lose. Over a long period, let the numbers be your guide - and those numbers tell us the stock market is the best bet for long-term investments. Before you settle for a low-grade savings account, consider again the historic return on investment offered by the stock market, and look at the alternatives on a £250 investment:

<>< mce_serialized="1"><>

Stock market investing vs. more cautious investment

Year

4%

8%

11%

1

260

270

277

5

304

368

421

10

370

540

709

18

506

1000

1635

21

570

1258

2237

The rate of 4% represents a typical interest-bearing account for children, while 8% represents what you might expect from a tracker fund, with inflation and charges taken into account. The so-called "safest" investment vehicle, an interest-bearing bank account, is the most guaranteed to be a losing proposition, as, if you're getting a guaranteed 4% a year, you're missing out on the much greater growth the stock market can give you. It's true that you're protected from losing your initial investment if you take the conservative bank account route, but you're also "protected" from any major long-term investment returns. Over the long term, the "risky" investment in the stock market will usually prove to have had the lower risk and the higher gain.

The easiest way to teach your children about finance is to get them involved. Investing money on their behalf is a great place to start, but that's just the beginning. Teach them how money grows when invested wisely. and how, when the growth is added in, that will also start to grow. Show them how to save by opening a building society account for them, and get them to pay the money in.

© Copyright 2008 Empowerment Life Coach. All rights reserved.