Getting a fixed salary and hoping for good bonus at certain period of the year is not going to help you to retire in good shape in future. We must invest!
Daily job is working for money, you get the salary after you have put in your effort for the company.
Investment is different, you pour in the money, and the money works for you. In fact, you getting more people to help you to earn the extra money.
Simply put, investment is kind of like compound interest.
| TIme | Beginning of year | End of year | Annual Interest Amount | Total Interest |
| 1 | 100,000.00 | 105,000.00 | 5,000.00 | 5,000.00 |
| 2 | 105,000.00 | 110,250.00 | 5,250.00 | 10,250.00 |
| 3 | 110,250.00 | 115,762.50 | 5,512.50 | 15,762.50 |
| 4 | 115,762.50 | 121,550.63 | 5,788.13 | 21,550.63 |
| 5 | 121,550.63 | 127,628.16 | 6,077.53 | 27,628.16 |
| 6 | 127,628.16 | 134,009.56 | 6,381.41 | 34,009.56 |
| 7 | 134,009.56 | 140,710.04 | 6,700.48 | 40,710.04 |
| 8 | 140,710.04 | 147,745.54 | 7,035.50 | 47,745.54 |
| 9 | 147,745.54 | 155,132.82 | 7,387.28 | 55,132.82 |
| 10 | 155,132.82 | 162,889.46 | 7,756.64 | 62,889.46 |
| 11 | 162,889.46 | 171,033.94 | 8,144.47 | 71,033.94 |
| 12 | 171,033.94 | 179,585.63 | 8,551.70 | 79,585.63 |
| 13 | 179,585.63 | 188,564.91 | 8,979.28 | 88,564.91 |
| 14 | 188,564.91 | 197,993.16 | 9,428.25 | 97,993.16 |
| 15 | 197,993.16 | 207,892.82 | 9,899.66 | 107,892.82 |
| 16 | 207,892.82 | 218,287.46 | 10,394.64 | 118,287.46 |
| 17 | 218,287.46 | 229,201.83 | 10,914.37 | 129,201.83 |
| 18 | 229,201.83 | 240,661.92 | 11,460.09 | 140,661.92 |
| 19 | 240,661.92 | 252,695.02 | 12,033.10 | 152,695.02 |
| 20 | 252,695.02 | 265,329.77 | 12,634.75 | 165,329.77 |
With 5% annual interest rate, and initial deposit at $100,000, you would get over $250k by year 20!
Crazy right? Let’s get our money into good use!