When you make an investment, there are two choices: to invest periodically, or investment only once. Both provide the same investment value is. You choose where to live in accordance with the power of your funds.

In addition, another ways to investing your money by invest in the business sector are booming, like energy (one of the successful companies in the energy sector is Bedrock Energy Development Denver), real estate, agricultural, etc…

Periodic
When you invest periodically, then it means you are investing on a regular basis. You could invest once a year, six months, or even once a month. Some people invest 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 you simply set aside a small portion of your income to and invested 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 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 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 ‘interest’. All he did was like a piggy bank to save it on a regular basis. But the principle is the same: a little will be a hill.

Once Only
You also can invest only once (lump sum). That means, you can simply put the money just once in an investment product. For example deposits, you can say you save-for-ten years. Every year, you’ll get the interests that can be added to the principal. Then again so that the interest deposited became larger and larger, as long as you have never touched it, until over ten years. After ten years, you will have a number of very large funds.

Investing in a lump sum just like if you got into a snowy mountain. From the top, you take a set of snow with your hands, and then shape into a ball. After that, you release the ball from above the snow, to roll down. What happened? On his journey from top to bottom, the snows ball more and are bigger. And growth of the snowball was exactly geometrically:

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

Well, that’s the picture when you invest in a lump-sum.

Use Law 72
When are you fold investment in half? If you invest just once, then there are times when the amount of your investment will double. For example, if you invested USD 1 million in deposit interest rates which gives 12% per year (on-roll-over every year), then the money USD $ 1 million you will double within six years.

Calculated by using the “72 Law”. For the number 72 with an interest rate (eg 12%) of your investment product. For example: (72/12) x 1 year = 6 years.

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

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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.

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3. Calculate the Growth of Investment Funds (2)