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This is what awaits you in this article
Wealth accumulation? Yes, but ...
When I talk to people in my environment, I always hear the following things: "Wealth accumulation? It's important, but that's only for rich people anyway." Or: "It's only worth it when I'm earning real money - what's the point of €25 a month?" Or also very popular: "Why save today? Who knows if I won't get run over by a bus tomorrow? Then the money won't do me any good either." Maybe these examples remind you of conversations you have with friends and acquaintances. Or do you recognise your own arguments in some of these statements? In this article we want to take away your fear of the stock market and ETFs and show you how important it is to start as early as possible.A snowball and the magic of compound interest
Admittedly: No one has ever become rich just by saving. Therefore, you should definitely make sure to get help in the form of compound interest. Warren Buffett - one of the richest people in the world - likes to compare compound interest to a snowball that you try to roll down a mountain. At first its just small flakes, but little by little you form a small snowball. And now you push it further and further in front of you. At the beginning its difficult, but over time the snowball grows in volume until at some point it is so big that it collects more and more snow as if by itself and grows bigger and bigger all by itself. From this point on, you no longer have to push the snowball - because it now rolls down the mountain as if by itself and automatically collects more and more snow on its journey and thus becomes bigger and bigger. But how long do you have to save to finally get your snowball rolling? Of course, the motto here is: the earlier you start and the more you can save, the faster you will reach a critical mass from which wealth accumulation becomes easier. Of course, I dont want to pretend that you will become a millionaire over 10 years with a 25 euro savings plan - but this is about putting your own snowball on the field and starting. Because only those who start can achieve their goals. I have a few examples for you. I used the justETF savings plan calculator for this. For our example, we assume 0 euros in fees per savings instalment and ETF costs of 0.12% p.a. (this is what a low-cost world ETF currently costs). If we now assume (rather conservative) expected returns of 4.5% per year, you get the following result:- With 25 euros per month alone, you have saved 10,343.03 euros after 21 years.
- With 50 euros per month, you get 10,522.86 euros after 13 years.
- With 150 euros per month, you will have 10,077.82 euros in 5 years.
- And with even 250 euros per month, after 3 years you have already reached 9,634.43 euros and thus the (intermediate) goal of 10,000 euros.
justETF tip: Try it out right now and calculate when you expect to reach your goal of 10,000 euros.
Why is the start so important?
Did you know that almost 80% of all millionaires in Germany have achieved their wealth not through inheritance, but "self-made" - that is, through their own work and investments? Crazy, isn't it? These figures come from researchers of the Socio-Economic Panel (SOEP) at the German Institute for the World Economy (DIW Berlin) and the Westphalian Wilhelms University Münster and have been published in the journal "Humanities and Social Sciences Communications". The figures should encourage you - because even if it doesn't take a million to become happy, it does show that the path to your own small fortune is definitely possible. All you have to do is follow a few simple rules.3 basic rules of successful investment with ETFs
- Start now! With ETFs, there are no hurdles to building your wealth - we'll help you do it.
- Look for a simple strategy - because with ETFs, too, less is often more.
- Stay true to your strategy and persevere - no matter what others think or say and through all crises. The stock market will reward you for it.
