Save Your Way To A Million

By Author: Bonny Kominek
Total Articles: 32
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When people talk about becoming millionaires, they generally talk about it in terms of winning the lottery or becoming a business mogul. However, you can become a millionaire just by investing fairly heavily over the course of your working life if you do it right.

When it comes to investing, the types of investment that promise the greatest returns are also the ones that have the greatest risk factor attached. There are several different types of investment available, with varying risk factors.

Cash based savings accounts and government bonds are perhaps the least risky type of investment, and can be expected to give returns of around four percent per annum. Corporate bonds can be expected to earn around 6 percent, although they are slightly riskier than government bonds or savings accounts.

The property market has taken a bit of a battering in recent times, but there are still great opportunities in this market for those who know how to invest in it. If you invest wisely in property, you could earn a return of eight or more percent per year from your investments.

Stocks and shares is the investment ...
... option that offers the highest potential returns, but also the greatest risks. However, if you make good choices, and do not lose your nerve, you could expect to see an average return on your investments of about ten percent per year.

Investing around a thousand pounds a month for ten years in the stock market could enable you to build up a nest egg of about two hundred thousand pounds, nearly twice what you had put in.

The beauty of investing your money over a long period of time is that the money that you earn from the investment can be continually reinvested to earn you even more money. This phenomenon is often called compound interest.

If we were to invest our thousand pounds over a longer period, we could expect to see exponentially greater returns, and over twenty five years, you would have earned your first million with a couple of hundred thousand to spare. Bonny Kominek is the author of this article. Alliance