{"id":6805,"date":"2022-03-11T13:31:33","date_gmt":"2022-03-11T12:31:33","guid":{"rendered":"https:\/\/cowrywise.com\/blog\/?p=6805"},"modified":"2022-09-09T14:12:29","modified_gmt":"2022-09-09T13:12:29","slug":"introducing-auto-reinvest","status":"publish","type":"post","link":"https:\/\/cowrywise.com\/blog\/introducing-auto-reinvest\/","title":{"rendered":"Introducing Auto Reinvest: How To Make Your Investments Work For You"},"content":{"rendered":"\n

I still remember what I was doing when I got the email titled \u201cYou’ve unlocked a new badge<\/em><\/strong>!\u201d<\/p>\n\n\n\n

In the body of this email, I was told that I had achieved \u201cThe Harvester\u201d badge which meant that I had earned at least \u20a610K in investment returns.<\/p>\n\n\n\n

Me? Earn \u20a610K without actively working for it? <\/p>\n\n\n\n

If you know where I\u2019m coming from, you would understand how crazy this achievement is. By the time I earned the next level of the harvester badge and the next level after that, it became more apparent how easily I could earn extra income if I just let my investments grow!<\/p>\n\n\n\n

I wish I could share my full story and why passively earning money in the form of returns is such an achievement, but I\u2019ll leave that for another time.<\/p>\n\n\n\n

The focus here is on the fact that, if I didn\u2019t leave my investments to keep working for me, I\u2019ll not be here with many more wins since that first email about unlocking The Harvester badge. <\/p>\n\n\n\n

Auto Reinvest: How to Make your Investments Work for you<\/strong><\/h2>\n\n\n\n

With the new Auto Reinvest feature on Cowrywise, you can automate the process of putting your investments to work even more efficiently. Beyond allowing your funds to grow and earn you returns, this feature ensures that any dividends paid to you can keep working to earn you even more. <\/p>\n\n\n\n

Previously, every investor on Cowrywise received their dividends in their Stash whenever a payout was made. This meant that investors who wanted to reinvest returns had to do so manually by buying additional units of the investment.<\/p>\n\n\n\n

With Auto Reinvest turned on, you can relax as an investor knowing that additional units of your investment will be automatically purchased on your behalf.<\/p>\n\n\n\n

Turn on Auto Reinvest <\/strong><\/h2>\n\n\n\n
\"Auto<\/figure>\n\n\n\n

Note<\/strong>: Some fund managers pay dividends (excluding the original returns you get on your investment), while some do not. It is these dividends that you\u2019re able to Auto Reinvest if fund managers payout. <\/p>\n\n\n\n

The Power of Compound Returns<\/strong><\/h2>\n\n\n\n

$81.5 billion of Warren Buffett\u2019s $84.5 billion net worth came after his 65th birthday. Our minds are not built to handle such absurdities.<\/em><\/p>\n\n\n\n

– The Psychology of Money<\/em><\/p>\n\n\n\n

As they say \u201cmoney is a terrible master but an excellent employee\u201d. It is dangerous to not master money. However, mastering money and effectively putting it to work results in a lot of benefits. One of those benefits is enjoying the power of compound returns.<\/p>\n\n\n\n

Compound Returns<\/a> is what’s earned on top of returns already earned. It can significantly grow your wealth but only patient investors reap its fruits. <\/p>\n\n\n\n

Say you invested \u20a6100k to earn 10% in one year, at the end of the year, you\u2019ll have \u20a6110K. <\/p>\n\n\n\n

You didn\u2019t actively work for the extra \u20a610k but earned it as returns on your original \u20a6100k investment. That is, \u20a6100k + \u20a610k (returns). <\/p>\n\n\n\n

Thanks to compound returns, in the second year, you\u2019ll earn 10% on \u20a6110k and not just the   \u20a6100K you initially invested.<\/p>\n\n\n\n

\u201cWarren Buffet is a phenomenal investor. But you miss a key point if you attach all of his success to investing acumen. The real key to his success is that he\u2019s been a phenomenal investor for three-quarters of a century. <\/em><\/p>\n\n\n\n

– The Psychology of Money<\/em><\/p>\n\n\n\n

Three-quarters of a century is enough time to let your compound returns run wild, and that was the real superpower that Warren Buffett had. This is the same superpower that\u2019s now available to you.<\/p>\n\n\n\n

Why should you turn on Auto Reinvest on all your Cowrywise investments?<\/strong><\/h2>\n\n\n\n