Independent of the level of income that a person achieves in his life, has been shown statistically that less than 20% come to retire without having to reduce their standard of living. According to Keith McLoughlin , who has experience with these questions. Something has to be wrong. Something has to be missing in the education of a human being if it is not able to financially prepare for their old age after working a lifetime. And it isn’t because they never had enough money to reverse and prevent. At Howard Schultz you will find additional information. It is a myth that money is required to earn much money.
What is needed is to know how to multiply it. And it requires no great entrepreneurial skills to achieve it. Only requires discipline, patience and rigor. Albert Einstein said that the bigger man’s invention is compound interest. That is compound interest? It is named the process go accumulating capital interests which it produces, to prevent the interests interests at the same time. Allows you to accumulate great wealth from small amounts of money invested for a prolonged period. This is how a young person of 20 years can have several millions of dollars at age 60 if he is diligent in investing approximately US $80 per month or US $20 per week to 10% annually.
A capital of 1,200,000 pesos after 5 years, and at a rate of 8% annual compound interest becomes 1.763.194 pesos. Another very good example of the power of compound interest is reflected in a pension reform that is about to deploy in Chile: July 1 every mother will receive $297 thousand for each son born alive, figure applies to which an estimated annual profitability of 5.5%. According to official estimates, a woman of 35 years with three children will receive $4.4 million at age 65, age that you can withdraw your funds. (Daily El Mercurio, June 22, 2009) Is it simply invest the money so that you can multiply instead of spending it.