Compound Interest : Scam Or True
The three things
Now days in the slow lane people invest in stocks. They keep on investing in stocks to become richer, they start to save more money and start investing in their lives. But the compound interest may give some winners and there are more losers than you think. Only the winners are shown in the front page not the losers. Remember playing cards with your friends for money. You either win or your friend wins. There is one loser and one winner. It is about luck. Compound interest and investing in stock market is the same as gambling. But the losers are just quiet and we can't fid them. But the winners become famous and will get many appreciation for investing their money on useless shit.
In 1900 if you had hundred dollars, it is a big amount. But if you now have hundred dollars, is it a big amount? Time changes and the value for money also changes. There are many people who start to save and don't even enjoy their life. They just keep on saving money and investing it, so they can become rich at sixties. It's no use become a billionaire in sixties.
People fall for this scam. You can't get rich by just investing. Only the guy you invest money to get rich from that commision. You save 100 amount of your currency every month. In fifty years, it has six hundred month. In six hundred month you must have save 600,00 of your money. But fifty years have gone, that money is a less value because at 2073 sixty thousand won't be a great amount.
THen how does people like Warren Buffett get rich by investing? It is simple they buy invest millions of dollars in a one time. Imagine that you invest four million on X stock, you will get the returns high. But if you invest low amount of money you can't enjoy the fruits of compound interest.
Comments
Post a Comment