I was going to join Procrastinators Anonymous, but I just never got around to it…
Undoubtedly one of the most important financial concepts, especially for college students and other young people who aspire to achieve wealth and success is simply the Time Value of Money. To understand the awesome power that this principle provides, you really only need to understand one thing.
Building wealth is a mixture of understanding the concept of risk, reward, and the inescapable power of time. When we invest our money properly, whether it is in a bank savings account, a certificate of deposit, a stock, bond or mutual fund – one thing is a universal truth: you can’t begin earning money on an investment until you take the first step and get started.
Yes, it seems like such a simplistic statement but, just as we cannot avoid the inevitability of aging, the same applies to our money. The double whammy of the negative impact of inflation, coupled with what Albert Einstein famously referred to as “the most powerful force in the universe” – compound interest. These two concepts compel us to get off our financial butts and take action!
Simple truth: you can’t make money unless you take that first step. Get started today! In life, you can learn to work for money, or learn how to have your money work for you. Consult with a licensed investment professional, and let him or her get your money working for you. You’ll be glad you did.