You won’t win the lottery, so it is important to have a backup plan. You can add the lottery to your savings and investment accounts with a simple plan.
Do you think that winning the lottery will secure your financial future and help you save money? Farm Credit of Western New York reports that 16% of Americans do. Unfortunately, those 16 percent would have better chances of winning at the table in Vegas or being struck by lightning.
Most people know that relying on the lottery to retire is a risky proposition. For young adults, it is equally risky to expect social security and pension plans to protect your retirement. You won’t likely get any money from the mentioned sources if you are under 40. There is an easy way to ensure you retire early without much effort.
Imagine if you could get $1,000,000 for $73 a month! It’s not the lottery! By investing $73 per month, starting at 18 years old, you or your child can reach the million-dollar mark with minimal effort. When you’re financially secure at an early age, everyone can live stress-free.
You have a greater chance of achieving success the younger you are. You’ll be able to enjoy the 16 percent of people who are hoping for it every day. You data bullseye will win the lottery jackpot! You can fix the game, retire early and be your own big winner with a strong financial force.
The powerful money principle of ‘compounding interests’ is almost guaranteed to guarantee that every young person wins their lottery winnings. The snowball effect of compounding interest can have a huge impact on your finances. Therefore, the sooner you begin a consistent investment strategy the easier it will be to achieve financial freedom.
You’ve probably experienced compound interest if you’ve ever been in debt. Your credit card bills grow each month, even though you pay your monthly bill. This is compounding interest at work against you. This is compounding interest at its most powerful. Stop falling prey to the debt traps that plague so many people and put compounding interest to your advantage.
Compounding interest refers to income earned from compound interest. It is the sum of the amount you have invested and the interest earned in the past. Your investment pays you money on the principal amount you have invested and the returns you have earned. You are basically making money with your hard-earned cash, which you have invested in addition to what the original investment has paid you.
This simple financial literacy topic will work in your favor and you can make money from money you have already earned. This can create a snowball effect on your money, allowing it to grow over time. Compounding interest is more beneficial if you start sooner than later.
Reinvesting the interest earned last year can make you money. This is a powerful strategy because you can make money on all your previous 10 years’ returns after 10 years.
Check out our free compounding interest calculators online to find out for yourself. It is motivating to witness firsthand the powerful effects compounding interest has upon your money.