Let's make An Investment

When you make an investment, there are two options: invest periodically, or investment only once. Both give the same mean value of investments. Stay where you select the funds in accordance with the strength you have.

Periodic

When you invest periodically, then this means you make an investment on a regular basis. You could invest once a year, six months, or even once a month. Some people have invested every one or two weeks. But the important thing here is that what is meant by periodically is to invest regularly.

Usually, periodic investing is the most powerful way to achieve the target of future funds. You do not need to have a large amount of funds at the moment, but you simply set aside a small portion of your income for the past invested into an investment product. Eventually, you will have a balance of investment is so great, because you also earn interest.

Invest periodically just as a builder who is making a wall. What he did was pick up a brick, rub it with cement, and paste. Take again a brick, giving the cement, and stick it on the left or right of the last brick. And so on until he could finish one layer. After that, he will continue with the second layer. The second layer is completed, followed by the third layer. And so on.

Eventually, you'll see a wall. That is exactly the picture when you invest periodically. Only difference, by investing, you also earn interest. While the builder, did not get the 'flowers'. All he did was like saving money into a piggy bank on a regular basis only. But the principle is the same: a little bit, would be a hill.

Just once

You also can invest only once (lump sum). That is, you simply put money into a once only investment products. Deposits, for example, you endapkan for-say-ten years. Every year, you will earn interest that can be added to the principal. Then deposited again so that the flower grew large. But, as long as you never touch it, until the past ten years. After ten years, you will have a very large amount of funds.

Investing a lump sum just like if you go up to a snowy mountain. From the top, you take a bunch of snow with your hands, then shape it into a ball. After that, you release the ball from above the snow, to rolled down. What happened? On his way from top to bottom, that the longer the snowball will get bigger. And it's snowballing growth just like geometrical progression:

1, 2, 4, 8, 16, 32, 64, 128, 256, 512, 1024, 2048, 4096, and so on.

Well, that's the picture when you invest a lump sum.

Use the Law of 72

When your investments doubled to two? If you invest just once, then there are times when the amount of your investment will double. For example, if you invested $ 1 million in deposits that provide interest rate of 12% per year (on-roll-over each year), then your money USD 1 million will double within six years.

How to calculate it is to use the "Law 72". For number 72 by the interest rate (eg 12%) of your investment products. For example: (72/12) x 1 year = 6 years.

That period of time it takes for your investment can be doubled.