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Accelerating Growth

Time is the Most Critical Factor

It is all about time and we all have a finite amount of it. How long do you want to wait for that elusive passive income? Most working careers are about 40 years which may seem like a lot when starting a career but building passive income can take up to 20 years for most people. If you take your time for the first 10-15 years as most do you may have some passive income in your late 50s. Better late than never and you may retire reasonably well. But can you image replacing your income by the age of 30-35? Think of the life you could lead.

Re-invest Your Profits

I would recommend ploughing all your profits back into your investments to grow your portfolio even faster. This adds a compounding effect to your returns. This compounding accelerates your earnings. It is possible to halve the time to reach a desired net worth. I would recommend reviewing compound interest.

Live a Simple Life

Cut back on expensive and depreciating items. Maximise your income and minimise your expenses for a large savings surplus.

 

Many successful investors outwardly do not seem to be wealthy. They learned early to live a simple life to maximise their savings surpluses. After becoming independently wealthly the good habits they used became second nature. They didn't 'need' the fancy things in life to keep them content as they now have strong resources behind them. Their self-esteem has grown due to their wise investment choices.

 

Even if you choose to enjoy life's pleasures once becoming wealthy, your money management skills will ensure you do not destroy your wealth as depreciating assets are offset by passive income and your appreciating assets.

Maximise Your Investment Portfolio

A 10% return is a 10% return - it is the currency yield that is important. Getting 10% on a $1 million dollar portfolio is betting than 10% on a $50,000 portfolio. Use gearing wisely and buy strongly performing assets with minimal volatility. A get rich slow attitude is far safer and most likely to result in success. Get too greedy and you may find yourself 'gambling'.

Always Use Risk Management

Investments do not always go to plan. Even with the best planning unforeseen events happen. How much investment wealth was wiped out by the Global Financial Crisis. Not everyone saw the GFC coming. Risk management practices will protect you from major losses.