First I will say that I have always been interested in investing, but it sounded way too scary for me to even consider trying it. I’ve heard a lot of horror stories, mostly related to the stock market. I used to think that stocks were the only option. I knew that my bank gave me a couple of pennies every month for keeping my money in their account but it was never enough to catch my attention.
What’s the point? With that kind of interest, it would take tons of money and years and years (more than I have) of savings to ever make any substantial amount of money.
My change in thinking started one day while I was sitting with my boyfriend, talking about his RRSP investments. He was telling me about how his investment account had begun to grow. He said that once it got beyond a certain point, he started to see it “take off”. I immediately became excited and asked him “But how does this happen? How can you make so much money through interest?”. He said that he wasn’t sure how it worked, but it has something to do with compound interest.
“What is compound interest?” I asked,
“I’m not really sure how it works,” he said, “but I think it means that you gain interest upon interest which makes your investment grow a lot quicker”
“But, how does that make it grow faster?”
“I’m not really sure”, he said “I just know that it does”
I immediately knew that I had to learn more. He explained to me that he read about it years ago in a book called The Wealthy Barber by David Chilton. That was when he started his RRSP, making small contributions to it every week, the money from which he later used to put a down payment on the condo we are now living in.
I read the book he told me about right away, and was so excited about the things I learned, that I went to the book store and bought more books, and read every book I could find on investing, managing money, and saving for retirement. I had no idea that there was so much information that if known, gives a person such an advantage in creating a future for themselves.
You’ve probably heard of compound interest, but you may not have had someone explain it to you, or show you a visual example of the power it has to make you rich or even poor, depending on the situation.
That first book started me to thinking: “Why doesn’t everyone know about these things? Why didn’t someone tell me sooner? Why didn’t they teach me these things in school? Why are my parents in their 60s, and struggling to pay their debt every month, and to find money to buy the things they need?”
Many of the people I’ve talked to about this, have a vague idea of how finances work, but they don’t really understand it. They may have questions, but don’t know who to ask to find the answers. They don’t realize how important these answers are, and how much this information could impact their lives.
Learning this stuff makes you realize the power that knowledge can have! If only I had known when I was 17 working my first job, making money for the first time, that I had the power to make myself wealthy by the time I was 47, without changing my life the slightest bit. It’s all so simple but even people who have very successful career lives may not be successful in their financial life.
The good news is that I found out when I was 25, and am now on my way to a wealthy future, and am dedicated to spreading the word to people everywhere, to help them do the same.