3. SAVINGS PLAN
There are countless strategies for saving money and building wealth quickly, but the truth is: making money requires patience. Why? Have you heard of the "compound interest effect"? It’s the process where the interest on your savings accumulates over time, generating even more interest on the interest earned. My initial recommendation is simple: save 200€ per month in your 20s, 300€ per month in your 30s, 400€ per month in your 40s, 500€ per month in your 50s and 600€ per month in your 60s. This steady approach allows your money to grow exponentially over time.
Example: with 5% interest per year you will arrive at 310,564.56€ when you are 70 years old.
Invest this permanently with 5% interest per year and you get 15,528.23€ in interest payments per year, giving you a nice additional private pension of 1,294.02€ - bear in mind taxes on income though!!!
My initial recommendation is simple: save 200€ per month in your 20s, 300€ per month in your 30s, 400€ per month in your 40s, 500€ per month in your 50s and 600€ per month in your 60s. This steady approach allows your money to grow exponentially over time.
As an example, with 5% interest per year you will arrive at 310,564.56€ when you are 70 years old. Invest this permanently with 5% interest per year and you get 15,528.23€ in interest payments per year, giving you a nice additional private pension of 1,294.02€ - bear in mind taxes on income though!!!