Investing in Your Future Makes Sense
Investing is important for everyone. Put your extra money aside and make it work for you. This is how to plan for a happy life and to have a great results when you get older. There comes a time in everyone’s life when they are not able to work as they did when they were younger. Those who plan well and make good investments will find this time of life very rewarding. Those who don’t plan for this time of life will suffer.
Compound interest is a great way to build up a savings account. Using the rule of 72, all one needs to do is divide the annual interest rate into 72 to figure out how many years it takes to double the amount saved. For example, at 6% annual interest, divide 6 into 72 and the answer is 12. So in only 12 years at 6% annual interest the amount placed in savings doubles! When starting with $1,000, in 12 years the amount is $2,000.
Tax Deductible Expenses
Everyone has expenses, but they fall in to two categories. The first category is necessary and the second category is discretionary. The good advice is to reduce discretionary expenses and put those same amounts into a savings and investment plan to prepare properly for a happy retirement. Additionally, some of the necessary expenses for the care and upkeep of a home, may be made on behalf of a home-based business which provides the possibility of extra income and some tax relief.