It Takes 25 Years To Become A Millionaire, To Get 2 Million Will Take About 7

It Takes 22 Years To Become A Millionaire, To Get 2 Million Will Take About 7

Just let that sink in....


      The power of compounding interest is amazing. When I talk to new young investors, I tell them that when you begin to invest in a 401k it's really no fun, the first year your account builds up to $4,000? Maybe $10,000 if you really hit it hard, and each month you look into the account you merely see a few more dollars in value, maybe a hundred more some day, maybe worse a big dip. It's not really that interesting. And for me during this time there was no interest in learning more about the magical market. I'll probably tell this story 100x over on this blog, but when my account finally hit $95,000. I got very excited, I waited... and waited... and waited... it was then I learned my investments were terrible. I got smart and changed my strategy and of course it hit 100k shortly after that.

     What did I learn? I learned about the investments I was making, and of course compounding interest. $4,000 going to $5000 in one year is not really interesting, but $110,000 going to $120,000 in one month is pretty damn interesting to me. You have to stay in the game LONG to profit. The stupidity of believing ANYONE can make significant money in months or a year is a terrible crutch to lean on. Of course there will ALWAYS be over night millionaires. There will always be someone who has the right youtube channel at the right time, that sells the right product at the right time. and I'm not saying we shouldn't strive to be that lucky dude. But we also need to have a realistic plan. Time and time again, compounding interest has made middle class into millionaire class.

     Let's take a look at a guy or girl who makes 70k a year, he invests $10,000 of his money for 10 years in his 401k..

That $10,000 compounding at a rate of 10% becomes $175,311.67 after 10 years. He or she has advanced in his or her career, has a few side hustles now and can max out at $19,500 a year...

That''s $19,500 compounding at the rate of 10% for 12 years with the $175,311.67 base becomes $997,134.65... Round it up to 1 million to amuse me...

He or she continues to put in $19,500 at the rate of 10%, it climbs to $2,146,998.97 after 7 years.

Or you can buy stupid shit online and at stores you won't give a shit about after 1 month to 1 year. The decision is yours.