How to get rich - slowly
Proverbs says "He who gathers money little by little makes it grow." Accumulation of finances is not necessarily a difficult science. But it does take a lot of patience, self-discipline and time. The Bible warns against getting rich hastily. "A faithful man will abound with blessings, but he who makes haste to be rich will not go unpunished."
It is not necessary to save $1,000,000 in order to have $1,000,000. But rather the use of compounding mulitplied by time will result in interest earning interest. For example, if you have a principal amount of $50,000 tucked away in an interest bearing account of 9% for 35 years, the result is $1,020,698.40. So for just $50,000 over 35 years you earn an interest of $970,698.40. (Try our calculators on compounding)
One of the key elements of compounding is time. The earlier you start, the more you accumulate. The later you start, the less time you have. You might say: "I'm already in my 40s" or "I don't have $50,000". Well, here enters another component, and that is setting aside a monthly savings that goes into a long-term account. If you save $1,000 a month for 4 years, you come up with $48,000.
Now sadly, savings is not part of the American culture. A typical American indulges in a consumptive lifestyle, usually spending more than what is earned (until a financial crisis strikes). But we should take the example of Joseph, storing up for global crisises and ensuring that our families survive.
To create or increase your finances, you typically have 2 choices. 1) Increase income, 2) decrease expenses. Increasing income could mean taking up another job or working overtime. But that will take away time from your family and increases stress. Here at Scriptural Financial Freedom, we advocate starting your own business, but that is addressed under the 3rd part of Scriptural Financial Freedom DVD series which is supported at another site: http://www.scripturalbusiness.com.
Decreasing expenses should not include your tithes, offerings and taxes. However, many lifestyle expenses can be reduced or even cut them altogether. A good start is to set a goal for yourself to save $1,000 a month, and that should come from cutting expenses.
It is not necessary to save $1,000,000 in order to have $1,000,000. But rather the use of compounding mulitplied by time will result in interest earning interest. Get rich slowly by using the science of compounding.
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