In my last posts, I mentioned the issue of people receiving yearly bonus and misusing it. Do you know you can build wealth with your bonus? Let us lok at ways you can do that.
Someone who receives a yearly bonus of $100,000 can buy a house of the same amount and pay cash. Doing this eliminates the monthly house rent. The money used for house rent can be directed to retirement contribution. The money can also be used as an investment which gives you return. If this amount is used for investment for a period of ten years, you can even quit your job because the money has accumulated a lot.
The biggest investors today did not start with a lot of money. If you remember my old posts where I mentioned that a monthly contribution of $100 for a period of 30 years turns one into a millionaire and $500 per month ($6,000 per year) makes you $6-$7 million in 30 years. $100 for 1 year totals $1,200 per year. If $1,200 can make one a millionaire, imagine what $100,000 per year can do for you during 5 or 10 years.
The reason why many people end up poor is that they do not invest. Many think investment is meant for some people. In a capitalist economy, anybody can be an investor. It is a question of spending less than you make. There is no miracle. No one is born an investor. Think about this!
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