Anonymous wrote:
Anonymous wrote:
Anonymous wrote:You can become quite wealthy without a very high income if you spend a lot less than you do earn and consistently and sensibly invest the excess over a long period of time. The time value of money is very powerful. As Einstein said, compound interest is the 8th wonder of the world.
Save $1M, add $1K/month for 40 years, earn an average of 10% annually (the historical long-term return of the stock market) and end up with $50.5M.
40 years is a long time, so patience, focus, and discipline is required, as is the initiative to accumulate that initial $1M. But it can result in a very comfortable, financially secure retirement.
Start with a million dollars and earn 10% a year is a hell of a plan, I love it.
How else do you think people become wealthy? By not saving anything and just waking up one day with millions? $1M is achievable for almost anyone who starts saving and investing early and sticks with it.
Start at age 20 with $1K, earn 10% for 10 years, adding $1K/month, and you end up at age 30 with nearly $200K. 10 more years, you'll have $710K. In 5 more years you'd be 45, and would have $1.2M. 30 years later, when you're you'd be 75, and would have $23M.
Begin with a higher starting balance from summer or part-time employment, or save more each month, and your ending balance will be even larger.
Only a lack of vision, along with discipline, is stopping you.
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