Make time and compound interest work for you
WALLET<br><br>All durable wealth is based on time and compound interest – interest earned on interest. Money earning 10% interest doubles every 7 years, therefore at the end of 30 years your sh10,000 will be sh160,000 or doubled more than four times. So whoever you are and what ever age you are
WALLET
All durable wealth is based on time and compound interest – interest earned on interest. Money earning 10% interest doubles every 7 years, therefore at the end of 30 years your sh10,000 will be sh160,000 or doubled more than four times. So whoever you are and what ever age you are, here are some tips to set you on the road to wealth.
Before, and not after, you pay your bills, save a portion of your salary every month. It is recommended that you save 10 % of your take home cheque.
You might not be able to do that immediately but build up to that figure. This money is not for holidaying, partying or buying new clothes.
To save yourself from eating the above you must have another savings account – a percentage of your income as well, where you put money aside for holidaying, partying and buying clothes and shoes.
After one year of saving or when you have saved more than sh100,000 whichever comes first open a treasury bill account with Bank of Uganda. For as little as sh100,000 one can buy treasury bills and benefit from higher interest rates than any bank savings account in town.
Higher interest rates will help you compound your money faster.
As your war chest builds up you can begin to invest in land, shares and businesses always with an eye on getting a higher return on your money than you were getting on treasury bills.
All durable wealth is based on time and compound interest – interest earned on interest. Money earning 10% interest doubles every 7 years, therefore at the end of 30 years your sh10,000 will be sh160,000 or doubled more than four times. So whoever you are and what ever age you are, here are some tips to set you on the road to wealth.
Before, and not after, you pay your bills, save a portion of your salary every month. It is recommended that you save 10 % of your take home cheque.
You might not be able to do that immediately but build up to that figure. This money is not for holidaying, partying or buying new clothes.
To save yourself from eating the above you must have another savings account – a percentage of your income as well, where you put money aside for holidaying, partying and buying clothes and shoes.
After one year of saving or when you have saved more than sh100,000 whichever comes first open a treasury bill account with Bank of Uganda. For as little as sh100,000 one can buy treasury bills and benefit from higher interest rates than any bank savings account in town.
Higher interest rates will help you compound your money faster.
As your war chest builds up you can begin to invest in land, shares and businesses always with an eye on getting a higher return on your money than you were getting on treasury bills.