“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesnt ... pays it.” ― Albert Einstein For those of you who didnt get the memo, on Tuesday this week between 7:15 am and 08:06 am South African markets moved drastically, it was a ball market my friend, a very long and good one. With an investment as little as 10k with 20% risk you couldve made over 600k, and with 100k with 10% risk you couldve cashed out over 3 million, all in less than an hour, and some bold people took actions with various amounts of money, though most of them arent from SA but there were few people from here and congrats to everyone who jumped in. There are some men around here who made good money and they couldnt wait to see it in their bank accounts, some of them are new in this game and they couldnt believe it, theyve never made that much throughout their entire careers. Its amazing what willingness to take risks and explore what you arent familiar with can do for you. Normally it takes 3-5 business days for money to be transferred to an individuals bank account, but this time it was done in less than 2 business days, because this people couldnt wait, too much excitement. As much as Im impressed by your boldness to take risks when you hear sound investments, I also have to advice you that not every investment you make will give you such good returns, in some instances you will lose money, and its your responsibility not to gamble with your money. My personal advice is make sure you have basic understanding of the investment vehicle youre about to take before you place your money in it. And as for positive returns you recently made, please remember that a million is not what it used to be several decades ago. Infact if you made about 3 millions in SA rands, based on international evaluation standards you arent a millionaire. I wouldnt advice you to quit your job, take a vacation, move into a new home, buy a car, etc. Continue living like youve always did, keep your job and live way beneath your means. Of course youve got to reward yourself. The best thing you can do, which will enable you to accumulate and sustain more wealth, is taking 10% of your profits as a reward, in 3 millions that would be 300k, and give yourself an annual salary increase. Thats an additional 25k per month. Invest 50% on short and long term investments, and save 40% just incase the economy goes bad and you lose your investments. You dont necessarily have to follow this exact formula, just get excited responsibly and avoid showing off. Once again, congrats.
Posted on: Thu, 07 Aug 2014 19:15:26 +0000
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