The Younger, The Richer

One of the youngest billionaire today is Dustin Moskovitz, Facebook's third employee and the roommate of Mark Zuckerberg when they studied at Harvard. Soon they moved to Silicon Valley to launch the most popular social network in the world today. Some would say that the reason why he achieved what he achieved was because of his skills and talents. Some would say that he was able to grab the opportunity he was given a chance to. and some would say that its all because of luck. But would you believe me if I tell you that you can also achieve what they achieve if you will only start early. One of the common saying in investing is - the younger you start, the richer you become someday. Why is that? Well, the basic rule in money is that money's value tends to fade over time. The culprit is what we call inflation. For as long as you keep your money in your pocket, it losses its value. How to overcome inflation? One way to overcome inflation is to spend the money. This way you already get the value out of your money or you can either save or invest it. Though it rests on some other people's vault, it circulates and is used by some business or investors that will soon add up to its value when returned. How does it makes you richer? When you save or invest your money it will gain more value over time. And though this is not always the case to some investment instruments like stocks, generally most of them grows its value from year to year. Whats the benefit of starting young? Ever heard of compound interest? Compound interest happens when the interest or any gains from your principal became part of the principal and will earn interest for the next cycle. Since investing and saving takes time, it will be an advantage when you start young because you will have more years for your money to grow. You will also have more time to recover if bad things happen. If you are a parent, it pays to tell your kids the value of saving and investing today. If you do not have your own family yet, it's time to start investing right now. And if you are a child, listen to your parents and save that little cash to your own piggy bank. More time, more savings and investment, the better future you can have. Good luck!

Mark Hugh Neri

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