Very strange!! Converting a bad habit to millions !!. Possible? Yes, possible. If you have right mind and little willpower. Read the following once if you have a bad habit that you really want to stop and earn instead. Particularly, you should be pity if your family expecting you too long live and when seeing the cute faces of your kids. Simple explanation to a bad habit is, spending money to get something regularly that is not useful in any way to your life and can slowly spoil your health and life.. e.g. smoking, drinking, gambling etc..A perfect example is as follows: A guy smoking 2 packets of cigarettes per day and the cost of the same is 8 dollars in an average. In a month he is spending $8 x 30 = $240 and yearly $8 x 30 x 12 = $2880. If he had that habit for last 10 years, he would have spent and amount of $28800 at a minimum. It will double if someone is smoking more than that.If he stop the habit of smoking and invest the amount in a good diversified equity fund with monthly SIP (Systematic Investment Plan), if there is a CAGR of 15% per year, could you calculate the amount he is going to receive after 7 to 10 years !!!!Stopping a habit like smoking is very painful and we well feel that something is missing. If you really want to stop the bad habits, just remember the face of your kid and imagine his/her position once if he lost his father or mother. Imagine how he or she needs you time to time once they lost you.Of course, the amount of $280 is small sum but remember Warren Buffett, the great investor, who start investing with low as this amount and his worth today is more than $42 millions. Remember the great quote from Winston Churchill, “When there is a will there is a way”. All we have lots of ways to become rich by avoiding our simple, dangerous habits. But, WILL POWER is entirely depends on you along with finding and utilizing the ways.
There is a great myth in investing world that, start investing requires plenty of money. This is just a myth. Those who are believer of this myth is looking to the investor millionaires. Be aware that most of them started their investing career with very few dollars. Doesn’t matter how much dollar you have to start investing. It is matter how you learn the art of converting this amount to double. Let’s say, you learn the art of converting your $ 500 into $ 1000 in a year. The profit of $ 500 may not seem like a lot but in terms of percentage, you have made a 100 per cent profit.
When you just start out, don’t worry about the returns you make. Instead, think in terms of percentage growth. If you can make 100 per cent on an investment of $ 500 then you could make 100 per cent profit on a bigger amount like $ 500,000.In the world of investments it is very easy to make money once you increase your capital. But in the first few years, you ideally need to focus on gaining knowledge. Returns might be slow in the beginning but with time your returns will rise significantly.So don’t act like a coward. Instead, be wise and think yourself and for your beloved ones.
Reference: Check the side bar of this blog and you can find a bigraphy of Warren Buffett named “Buffett: The Making of an American Capitalist” by Roger Lowenstein. Buy that today. It will give all information to how start investing with a very few dollars. You will never find such book anywere in the world other than this.