Wednesday, April 24, 2013

How To See Your Money Grow

I used to see how "compounding" works to my disadvantage. I used to be buried in debt due to my misused of credit cards. Those were times of frustrations, depressions and panic. I saw how my debt increase rapidly, exponentially due to the compounding interest computations on my unpaid balances.

Thank God, I was set free and the lessons I learned helped me manage my money better these days.

Today, you might be in the same predicament I was before. Buried in debt, unable to make both ends meet. There is a way out. You need a mentor to help you get out of the "rut" and start living, really living the life God has planned for you.

I am mentored by one of the best in financial literacy and of course spiritual literacy as well. I am mentored by Bo Sanchez. Who? yes, Bo Sanchez.

Today I want to share an article he wrote to us, members of his Truly Rich club. We get this kind of notes from him on a regular basis and it helps us GROW our investments in the Stock Market. I can say, with humility, that I have learned to invest in the Philippine Stock market. Yes, the stock market we used to avoid because it is only for the RICH. It's now made available to anybody to wants TO GROW HIS INVESTMENTS.

Compounding is now working for me as I see my investment in the stock market GROW.

You too can make this happen in your life. You are positioned to feel what the members of the Truly Rich Club are experiencing now.

I hope you will gain insight into this article by Bo Sanchez.

Don’t Interrupt the Compounding! 
If You Withdraw P50,000 Today, You’re Withdrawing P1 Million Tomorrow

Oh, I know it’s tempting.
When the stock market is growing sweetly (like now), it’s sooooo tempting to withdraw “just a little bit” for that new ladies’ watch. Or a Hong Kong vacation. Or a birthday party in Boracay. As much as possible, DON’T.

If you withdraw, you’re interrupting your compounding—the greatest mathematical force in the universe.
Let me give you an example…
Johnny saw that in a span of 18 months, his stock market fund has already grown from P100,000 to P150,000.

He’s ecstatic. He’s thanking God. He’s inviting friends to join him at the TrulyRich Club. (Very good!) He’s dancing the gangnam dance.

But then one day, while walking in a mall, Johnny sees this really nice “spaceship-looking” gizmo that
functions as a cellphone/coffeemaker/vacuum cleaner all rolled into one. It can make phone calls. It can make coffee. It can clean your house. It’s astounding. (Okay, I’m exaggerating. But I’m simply saying that there’ll be temptations out there that are very real.)
The price? P50,000.
Definitely not in Johnny’s budget. Unless…
He thinks of his stock market investments.
He’s got the money.
He decides to go for it!
He withdraws P50,000 from his stocks and buys the gizmo. He can now talk to his girlfriend and make
coffee and suck dust from the living room’s carpet.
Question: Did he really withdraw P50,000 only?
In 20 years, if his stock market investments grew by 16 percent a year, his total money would be LESSER by P1 Million.
Why? Because he interrupted the compounding.
I’m not kidding. Compute it yourself.
I urge you: Avoid withdrawing from your stock market investments.
If you feel tempted, just remind yourself: “When I withdraw P50,000 today, I’m actually withdrawing P1 Million tomorrow.”

May your dreams come true,
Bo Sanchez

You are just a click away from being Truly Rich. Why not explore the possibilities and see for yourself how financial literacy can change the way you think and do things. 

To your success,

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