asked in Business+Finance by (71 points) 1 3 9

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answered by (393 points) 2 3 14
You can certainly leverage the power of compound interest to save your way to a million dollars, but the whole thing about compound interest is that it takes time. Save a bit this month, maybe a bit more next month, and so on and so forth, for a few decades. As long as you start early, you can rip the fruits of your effort by the time you want to leave the workforce or try some new venture. You can accomplish a lot in 5 years, but it's still a really short period of time in the long run. The best thing you can do in that time is invest in yourself: learn new skills, try several things, maybe get further education. The more valuable you are, the more value you can get from the world. Who knows, you could become someone who can earn a million dollars in a single month. But that takes time and effort.
replied by (71 points) 1 3 9
Yeah that's right. Maybe learning new skills and earning from those can help me get another source of income.. Thanks for the reply
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answered by LEGEND (6,011 points) 6 13 26
Savings can only take you as far. Besides savings is only money kept away which yields little and in bits. The value either appreciates or depreciates pending on stock exchange. It is better to invest your money wisely. In fact multiple investment by proper planning research and execution.
It is good to save. The returns depending on what kind of savings you are into will not make you a millionaire in a hurry. However, if you plan and invest wisely, your returns will come in no time. On a second thought, you can save and then invest your savings.
You need to know what venture you are about to enter. Determine what is good for you. Educate yourself about it. The pros and cons. Start little before going in big and always bear in mind that success isn't a day's thing but cumulative.
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answered by ELITE (3,054 points) 8 36 66
I quite relate to your concern, and as I was browsing for new ways to invest, I came across a post where a guy wrote his story on how he became a millionaire in 5 years. He said he had invested his money in mutual funds. He started with an initial deposit of 3000 USD with monthly investment of around 200 USD. He said that the thing about mutual funds is that you're just gonna invest your money and wait for it to grow. To cut the story short, he's earned more than a million after 5 years.

If you're someone who always has a lot of bills to pay, then I doubt you'd make a million in 5 years time. So I'd suggest you look at the opportunities in your areas and grab it as early as now. Invest wisely instead of just keeping your money in your bank account.
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answered by ELITE (3,008 points) 4 13 28
The Keynesian theory of savings will always say that you are going to become rich only if you go ahead of make the proper investments. I think that savings and not investing will never be a way for you to become rich man as becoming rich does not depend solely on savings. I have realized that even the force of inflation can always affect the value of the money that we have in bank accounts and this is the reason we should not always be over excited by just keeping money in the bank.
There are bigger ways that we can get to invest the money that we have saved such as opening a business that we feel that it is going to blossom in the future and look at taking advantage of that. Also, buying some shares of some big companies is better still having to buy government bong is one way that we can increase the amount that we have.
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answered by ELITE (3,662 points) 7 15 56
If your consistent in saving your money and increase the saving amount, you can make a million by that time you goal for it But, it really slow and it take's long time to get that a million for 5 years. There is 52 weeks in a year and 12 months. If you keep saving money each week like 200  ( depends on your currency or income too.) Let it's $200 and you received salary every week, you save it every week and no skipping of saving. That is $10,400 in a year and multiple it by $52,000 for 5 years. It is pretty low if your goal is $1 million. Where, if you take a risk investing you small money into business like buy and sell, maybe you can get your goals within 5 years. But of course if it is Philippines peso, $52,000 is already over a million. When you save in Philippines money every fortnightly like 2,000 peso that is 104,000 a year and multiple it into 5 years, you got half a million.
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answered by VISIONARY (9,008 points) 7 17 71
I will want to agree to a long extent that saving can make us become a millionaire,there's power in saving and we can't just imagine the amount of money we can make in one year.

I know how much I realize when I was a bit younger and I had my little box where I store my little change the day I opened I was amazed at how much I had stored for just 6 months.

So if one want to be a millionaire from saving, then it good to plan it out and saved hard too. But the first thing is to have a good job or business that would be bringing in good money for us to be to saved.

If good money is coming in and we cut down expenses drastically then saving can be very easy,if one needs to saved a million a year,then one should try to save at  least 100 thousand montly to be able to achieved millions in 5 years
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answered by ELITE (3,084 points) 3 6 14
Saving is a sure means of planning for better future eespecially ffor those who were nnot born with silver spoon. However, there areare different types of saving. Someone saving less than hundred per month is saving and someone saving thousands per month is also savings. What determines who is actually saving or reasonably saving is the amount he or she is saving and wellbeing of such individual.

There is particular theory that surround the principle of saving by Warren buffet which says "save before spending, don't spend before saving". The principle have made a lot of great minds and men if the society. So inline with what I've just said, it is important to start up an independent business and start saving afterwards, if only you're not dreaming to syphon Government.
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answered by Patron (2,999 points) 3 8 16
It is very possible for one to become a millionaire in the next 5 years through effective savings,  there different ways you can make savings to be very active such that if you save monthly,  the amount you save this month will have yielded a reasonable interest before the following month to top your savings,  if this trend continues it very possible to make millions in the next 5 years especially if you good amount of money monthly.
If you save little amount of money monthly and you don't reinvest the savings into another business you may find it difficult to beat the task,  I have seen people who started savings with as low as $100 and they are millionaires today because they were patient and always re-invest the savings continually.

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