Imagine you have two children, twins, David and Dianne.On their 21st birthday, for their present you give each of them enough cash to place a small deposit on a home in Australia.David uses the money to buy a house, which he rents out while he lives with his mates.
He never makes any further investments, and never saves any money, preferring to spend all his money on going to the pub, restaurants, traveling and on himself.
Diana on the other hand is a great saver!
She in facts starts to save out of her paycheck a monthly amount, which she adds to the lump sum you gave her. Due to her conservative nature, and the worry about losing her job, interest rates, property prices being too high, a bubble, and the general state of the property market, she thinks it better to leave the money in the bank, where she manages to get a decent 4% annual return, tax free, which she re-invests every year.
Fast forward to their 50th birthday.
Who has done the best? Dianna, using the magic of compounding her original capital with the interest year on year and regular savings every year.
Or David, who has done nothing except enjoy himself?
This lesson should be taught to your OWN children. Diligent and regular savings and conservative safe investing regularly against what happens compared to the ‘lazy’ investor, David, who does nothing and never makes any effort to save money.
The difference between the financial position of these two needs to be seen to be believed.
WHAT YOU ARE ABOUT TO READ WILL AMAZE YOU.
Read the report here. (You will need to enter your email address to get access)
