Double Your Money With Zero Investment Experience Personal finance
Once you have decided where to invest, you will need to invest regularly and hold on to your investments for as long as possible. Time is your most precious resource, and owning your investments is the key to building wealth.
Even if you can’t afford to invest a lot of money, by giving your investments as much time as possible to grow, you can still earn substantial income.
Suppose, for example, that you invest $ 1,000 in an S&P 500 ETF that generates an average annual return of 10%. “Average” is the key word here because you won’t find a fund that generates a 10% return every year. Over time, however, the ups and downs will balance out.
Even if you didn’t make any additional contributions, that $ 1,000 investment would double in about 8 years. If you wanted your money to grow faster, you could keep investing a little bit each month.
Let’s say that in addition to your initial investment of $ 1,000, you also invest $ 100 per month. Assuming you were still getting an average annual return of 10%, you would hit $ 2,000 in a year. After five years, you would have about $ 9,000. In 20 years, you would have over $ 75,000.
Regardless of your level of experience, it is possible to make money on the stock market. By investing wisely and holding your investments for the long term, building wealth is easier than you might think.