Tuesday, February 23, 2016

The Power of Compound Interest & Why You Should Start Investing Early

Many people don't realize the benefit of investing early in life. Especially the young ones, who tend to have fun while they are still young. It's understandable why do such boring things while there are so many other fun activities in life besides investing. I myself sometimes find that saving and investing can be really boring (I am a human being and I want to have fun too). However, once you realize the power of compounding, you might get another picture why there are many benefit to start investing early in life. You see saving and investing is not a "get rich quick kind of thing", and if there is someone who claim to be able to get you rich quickly by investing, I hope you do your research diligently since there is probably high risk involved. Saving and Investing to create wealth is a long time procedure, but the sooner you start to put your money to work for you the more time your investment would grow better. 

Wednesday, February 3, 2016

How To Get Out Of The Rat Race

The Rat Race is a term that is used to describe the frustrating financial grind, hard-to-break financial lifestyle that most people are stuck in. It conjures the image of a “lab rat trying to escape while running around a maze or in a wheel, expending a lot of effort, but ultimately achieving nothing.” It’s very much alike to people who everyday work their butt off in a time-consuming nine to five job, for five days a week just to be able to pay their high expenses: a heavy mortgage/rent, bills, children, and liabilities. They have to wake up early in the morning when the alarm goes off, commute to work in a traffic environment, do the work that they probably dislike in their office cube, then commute back home in another hour of traffic, then repeat the same procedure the next day. The problem with the rat race is that there's no finish line. The illusion that working at the same job will be better bars off alternatives. They are trap in this vicious cycle believing the more money they make will solve their problem. However, this is not necessarily true. When income increases, they have a tendency to boost their spending, which can quickly spiral into dangerous overspending habits. The wheel just keeps spinning, and the longer they are caught in the cycle of consumption, the harder it becomes. Sadly the cycle get worse as they get older if not prevented. So how do we stop this insanity and get out of the Rat Race?