Time waits for no one! You can’t make it or store it!
Time – considered to be the ‘engine’ of most investments but it is always diminishing in each persons life. Unfortunately most people just never realise that we can always buy a share or property but you can never buy back time.
Often we have limited opportunities at creating abundance so the consequences of a poorly performing investment portfolio and wasting our income can be catastrophic. Time is quickly running out for the majority of baby boomers to create financial security.
The mathematics are the same for all investments but let’s take a property as one example that everyone understands.
Here’s an example of how Time compounds (multiplies) wealth:
| Period property held for | 10 Years | 15 Years | 20 Years | |
| Purchase Price | $450,000 | |||
| No Deposit (100% Borrowings) |
||||
| Average Capital Growth=3% | $733,000 | $935,000 | $1,190,000 | |
| Value of Property | $281,000 | $484,000 | $742,000 | |
| Equity (Gross Profit) |
The difference between 10 years and 20 years is a 100% time increase but the investment growth was 164% or $461,000. A 30 year plan is even more amazing.
Time also smoothes out the volatility in the market which is what causes many to sell too early and miss out on the magical effects of compounding.
Invest TIME to find out how your plan might include investments products to make your money work harder!