It has been suggested that the greatest gift you can give to your children is the gift of education. In a similar way to teaching a man to fish (you feed him for life), providing your children with the best education is an investment that will repay itself many times over.
Unfortunately, in many countries nowadays, the best education is no longer without substantial cost. A top USA or UK university can easily set you back $200,000+ for a 3 or 4-year course. There are some reading this who will equate $200,000 to the price of a new Ferrari, then look longingly at the two children and think, two Ferrari’s! Notwithstanding the impact of inflation (the rate prices go up) which generally is at a higher rate than the general cost of living inflation, this is a significant amount of money.
Now, I know what you must be thinking; “How can you build up that amount of cash?”
If I asked you if you could eat an elephant, you’d probably say no. But you actually could bite by bite and the same is true for building up a pot of money large enough to allow your child to follow their dreams.
Likewise, if you saved the money in a deposit account, it could take a very long time to grow. By making your money work harder for you, there is a greater likelihood of achieving your aims.
Einstein is quoted as saying:
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
Want to know more? Follow the link to learn the secret “Power of 72” and how you can get it to work for you.
In some circumstances this may actually be the right solution for you in the short term. Longer term you may well find that the effects of inflation (how much prices go up each year) erode the buying power of your hard earned savings.
Think back 10 years ago and try to remember how much a pint of milk or loaf of bread cost. Now compare it with how much it costs today and imagine how much more it will cost in 10 years’ time. If your savings aren’t growing at least as quickly, you are effectively losing money.
I will make complex financial issues easy to understand
I help international workers and expatriates plan their finances. Providing unbiased and independent financial advice, I work with many of the world's major Banks and Financial Institutions covering many areas. I offer a free consultancy meeting lasting 1.5 hours in which we can review your current financial circumstances and suggest options to you that are designed for your money to work harder for you, and in a tax efficient way.