Wealthy Barber Essays - Mutual Fund, Mutualism, Stock Market

Wealthy Barber Money is easy to make as long as you have a job, however what do you do when you have the money is another question. This is a question I have asked myself ever since I got my first part time job. Many people don't realize that your money can make you more money, through proper investment. Through this strategy you can not only live comfortably now, but you can live a wealthy retirement and enjoy your later years. One of tips which caught my eye the most was the chapter, entitled, Ten Percent Solution. This chapter seemed to make sense to me as I am on a limited budget with a minimum wage job. I am one of the fortunate students how somehow can balance school with a part time job. I do this because it allows me some freedoms while at school, such as eating well, socializing and trips to visit friends. I also seem to have a bit of money left over which I leave sitting in my low interest bank account. It is this money I am hoping to save for when I am done school and to begin my OSAP payments. Until reading the book, The Wealthy Barber, I never really had an idea of what to do with my money. Since I am also one of those students who is lucky enough to have a loan through OSAP, I figured I'd better start saving or making money as it is stated. I am currently saving money in a GIC account at a bank which has a mediocre interest rate of approximately 4%. However, if I invest in something such as a mutual fund for long term growth I will get a better interest rate and end up making more money without doing anything. The nice thing about both the GIC and the mutual fund is that they use the compound interest which allows your money to grow at a very rapid rate, as you will slowly start making money on the previous interest deposits as well as your own deposits which you make. However to gain significant interest growth you must have something at a reasonable interest rate. This book has really inspired me to do the research and start doing this. The whole idea of this novel is to save money now and you will live better in the future, such as when we retire. This is a great idea for all people, especially students as we will see better results as we are still young and can use compound interest to our benefit. Many students at all ages don't do this, in fact haven't even thought about doing this. It does sound unreasonable and a little out of our league at present times. Especially since we are paying tuition, books and the dreaded OSAP. However, if you think about it maybe it's not such a bad idea. Ten percent of most students part time job pay check is only about $30 - $40 a month or $360 or more a year. If a good interest rate of about 15% is found through a mutual fund and this is saved for 40 years or so, there is a really good chance that we will be millionaires when we take it out after 40 years. We may even have more that a million dollars after that because being students at a university we should all receive fairly well paying jobs. The more we make the more we will be investing, as the ten percent of our pay check will get bigger. So as we slowly get older our payments towards our future will get a little bigger and then the compound interest will grow on that. One of the biggest tips I found about this whole investment advice was the fact that you should shop around. There are many possibilities out there other than mutual funds. At my age real estate doesn't sound like a good choice, but it shouldn't be ruled out. In my case it would almost be a good idea as I am already married and am looking for a house. Since paying rent and paying a mortgage would almost be the