Make Your Money Work for You
I can hear my grandmother now, “A dollar today isn’t what it used to be!”

And she is right. Last year, I remember buying a can of soda and a bag of chips for $1. Now, my dollar can hardly get me one can of soda. Price inflation has taught me the importance of saving and investing.

Money has present value and future value. If you just put money today in a jar in your closet, it will be worth less in the future because of inflation.

If you invest the money instead, it can earn dividends or interest and be worth more in the future, as long as inflation is less than the amount your money earns.

invest1Don't let your money collect cobwebs

The journey to investing begins

When I was in elementary school, my family faced some financial hardships. This included the loss of my grandparents’ home because they were misinformed about how to transfer it to the next generation.

During this time, my mother worked hard to save our family treasure, my current home.

Watching my mother sacrifice so much made me promise myself that I would not make the same mistakes.

And that’s where my journey began.

My mother knew a lot about running a successful business but nothing about passing wealth onto her heirs.

So, together we read finance books and attended personal finance and investing classes by Better Investing.

The time value of money

In middle school, I came across a chart on the time value of money in “The Automatic Millionaire,” by David Bach.

The chart shows that the earlier you start investing, the more money you earn in the long run.

The book explains that the more time your money works for you at a compounded rate of return, the more your money will grow and multiply—exponentially.



Notice that even though the later saver invests much more money, the total investment never catches up with the earlier investor’s amount. That’s all because of the power of compounding and time.

When I saw this, I immediately set a goal to start saving and investing for my retirement as soon as I could get a job. By age 14, I got my first part-time job and began maxing out my contributions to my Roth IRA.

The time value of money concept taught me a very valuable lesson: “Start investing at an early age.” I’ve lived by that concept ever since.

Investing makes your money work for you...

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