01-07-2024, 02:37 PM
For many people, investing is a way to create a source of passive income. They invest in things like high-yield stocks, bonds,
mutual funds, or the S&P 500 and start using the returns to buy things they've always wanted, like a car or a vacation.
While this might seem like a good strategy, it's not the best if you want to get rich. If you invest $1000 and get a 10 percent return in a year, you can either take out $100 and spend it or reinvest it. By reinvesting and letting your returns compound, your portfolio can grow two or three times in a few years. Isn't it better to see your $1000 turn into $2000 in five years instead of spending all your profits?
mutual funds, or the S&P 500 and start using the returns to buy things they've always wanted, like a car or a vacation.
While this might seem like a good strategy, it's not the best if you want to get rich. If you invest $1000 and get a 10 percent return in a year, you can either take out $100 and spend it or reinvest it. By reinvesting and letting your returns compound, your portfolio can grow two or three times in a few years. Isn't it better to see your $1000 turn into $2000 in five years instead of spending all your profits?