In the previous article we talked about the results obtained on the basis of interest. In this article I will explain the results obtained by the period of time.

Combine Time and Frequency

The examples above assume you make an investment only once (lump sum), where you put the money just once, and silenced for years, until 50 or 100 years.

But what if you do not invest just once, but the routine every year? Let’s say you’re beginning of each year to deposit USD 1 million. After 50 years, the amount you’re investing to $ 50 million. But since you put it in investment interest rates, the balance of your investment after 50 years to $ 2,688,020,438!

Huge! In fact, the total amount you’re investing for 50 years was only $ 50 million. Try to compare with once investment (USD 1 million), and the results you get after 50 years is USD 289 million.

Therefore, a combination of the frequency of regular investment in long term investment you have will result in investment balance really great magnitude. So, how? Still want to postpone investing?

Periodically or Just Once

When you make an investment, then there are two choices, can make a periodic basis, or only once. Periodic investments, you could invest once a year, six months, or even once a month. There some people who invests every one or two weeks. But the important thing here is that what is meant by periodic investing on a regular basis.

Typically, a periodic investing is the most powerful ways to pursue a major target of future funding. You do not need to have a large amount of funds at this time, but small enough to set aside part of your income to invest in an investment product. Over time, you will have a balance of investment was so great, because you also earn interest.

Periodically invest the same as a builder who was making the wall. What he did was take a brick, smeared with cement, and paste. Take longer a brick, giving the cement, and placed it on the left or right side of this brick. And so on until he could finish one layer. After that, he will continue with the second layer. The second layer is complete, followed by the third layer. And so on.

Over time, you’ll see a wall. Just like that picture when you invest periodically. Only difference, by investing, you also earn interest. While the builder was, do not get the ‘flower’. All he did was like a piggy bank to save it on a regular basis. But the principle is the same: little will be a hill.

You also can invest only once (lump sum). That means, you can simply put the money just once in an investment product, such as deposits, and then you say let stand for ten years. Every year, you will earn interest, which you can add to your principal. Then, deposited again, so that the flowers larger and larger. But, as long as you had never touched it, until over ten years. After ten years, you will have a number of very large funds.

Related posts:

1. Let Investing
2. Calculate the Value of Investments Based on Interest
3. Calculate the Growth of Investment Funds (2)
4. Calculate the Growth of Investment Funds (1)