At the Berkshire Hathaway annual shareholders meeting in 1999, Warren Buffett was asked how to make $30 billion. His advice? "๐๐ญ๐๐ซ๐ญ ๐๐๐ซ๐ฅ๐ฒ".
Ever wondered why?
Money with TIME makes you Wealthier. Let's understand this through a very simple example.
Investor-1 and Investor-2 are friends and both want to retire at age 60. Investor-1 started investing at age 30 and Investor-2 started investing 5 years later at age 35.
๐ท Investor-1 started with โ Rs 10,000 per month as SIP.
๐ท Investor-2 started with โ Rs 20,000 per month as SIP.
๐ท Both increased SIP every year by 10% (as annual step up) &
๐ท Earned CAGR return of 13% p.a
By the age of 60 years....
๐ถ Investor-1 had invested Rs 1.97 crores in 30 years.
๐ถ Investor-2 had invested Rs 2.36 crores in 25 years.
Who do you think had more money in their portfolio at the end?
โ
Investor-1 โ Rs 9.8 crores
โ Investor-2 โ Rs 9.4 crores
๐๐ก๐ข๐ฌ ๐ข๐ฌ ๐๐ฏ๐๐ง ๐๐๐ญ๐๐ซ Investor-2 ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐ข๐ง๐ ๐๐ฌ 39 ๐ฅ๐๐๐ฌ ๐ฆ๐จ๐ซ๐ ๐ญ๐ก๐๐ง Investor-1, Investor-1 ๐ฌ๐ญ๐ข๐ฅ๐ฅ ๐ก๐๐ ๐๐ฌ 40 ๐ฅ๐๐๐ฌ ๐ฆ๐จ๐ซ๐ ๐ญ๐ก๐๐ง Investor-2.
Wondering how?
Investor-1 had 5 extra years of compounding to his advantage!
๐๐ก๐๐ญโ๐ฌ ๐ฐ๐ก๐ฒ ๐ฐ๐ ๐๐ญ ๐๐๐๐ ๐๐จ๐ง๐๐ฒ ๐๐ฅ๐ฐ๐๐ฒ๐ฌ ๐ฌ๐๐ฒ ๐ญ๐ก๐๐ญ ๐ง๐จ ๐๐ฆ๐จ๐ฎ๐ง๐ญ ๐ข๐ฌ ๐ญ๐จ๐จ ๐ฌ๐ฆ๐๐ฅ๐ฅ ๐ญ๐จ ๐ฌ๐ญ๐๐ซ๐ญ ๐๐ฎ๐ญ...
TIME once lost cannot be got back. So, stop contemplating & stop procrastinating.
๐๐ญ๐๐ซ๐ญ ๐ญ๐ก๐๐ญ ๐๐๐ ๐ง๐จ๐ฐ!