I have talked about the benefits of compounding and the importance of repaying debt quickly many times.
In this week’s blog I wanted to share with you an interesting article that focuses on these two topics.
It talks about the concept of the ‘Wealth Snowball’ and the ‘Debt Snowball’.
If you don’t have time to read it, the two simple, but powerful takeaways are this:
1) The higher your savings rate, the sooner you will achieve financial independence.
2) As your savings rate increases, the returns on your investments become less important.
This last point is particularly pertinent for doctors and dentists: your income is your biggest wealth accelerator – you just need a strategy to capture forced savings and then invest it wisely – you don’t need to take huge risks and get double-digit returns!
I hope you enjoy the read – Building a Wealth Snowball
If you have any questions, as always, I am happy to help. Just reach out via Yves@affluenceprivate.com.au