Since some amount of money is required in life, it would be nice to have a money tree. Most people believe that a money tree is just a fantasy. Fortunately, a money tree can be real. Just like a real tree, you can plant and grow a real money tree. The first thing you need to do is to plant the money tree. The starting size of you money tree will be a factor in determining how fast your money tree grows. Planting a money tree means saving a sum of money. This starting sum of money is your starting money tree that you plant. You have to start by saving a little bit of money regularly until you have saved a small amount.
After you have planted a tree (saved a sum of money) the next step is growing the tree. Your money tree needs two main things in order for it to grow well. The first thing is food. Food for a money tree means small regular additions of newly saved money. Just like for a real tree, the food is most helpful in the early stages of growth. As the money tree becomes larger and more established, it will be then able to grow mostly on its own without additional food. The second thing that the tree needs is an environment in which it can grow well. This means doing something with the savings that allows you to earn more money on the saved money. The options range from putting it in savings account to investing in bonds, stocks, real estate, or even your own business. As described in two general steps for increasing your economic wealth, the more money you try to earn with your money, the more risk you take for losing some of your money.
The key factor to understand about a money tree is that just like a real tree, a money tree requires time to grow. The more time your money tree has to grow, the larger it becomes. Below is an scaled example of a money tree starting with ten leaves and no additional money fed to it, growing at 7%. This just means earning a 7 percent return on your savings. Although this rate of return is not easy these days, it is doable.
This example shows you the power of time. The critical factor is starting early as possible. If you need your tree to grow faster you can do two things. One is to feed it regularly by adding new money to it. The other thing is to invest in things that may give you a higher rate of return. But remember this involves more risk for you tree.
So, as you know real trees are good for us. They provide us with oxygen, shade, healthy environment, etc. So go plant both a real tree and if possible a money tree for you and your families future, so that on one hot day you can sit under their shade.
Please comment below on your thoughts on trees and money trees.