Reply to Do many households here have $15 M net worth or more?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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.

[/quote]

Start with a million dollars and earn 10% a year is a hell of a plan, I love it. [/quote]

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.  [/quote]

Lack of vision but also market volatility, inflation, and math.

[/quote]

Time takes care of market volatility, inflation, and the math.  You can and should adjust your contributions to your investments upwards as your income grows with inflation.  Volatility is of no concern if you have a long-term investment horizon and/or don't need to take much from your portfolio.

https://www.nerdwallet.com/investing/learn/average-stock-market-return[/quote]

Who can save $1k a month as a 20 year old?  Many people have student debt and savings for buying a home taking priority. [/quote]

My nephew is saving more than that (he's 23, not 20, but was doing that straight out of college). He went to a school that gave him  a free ride, so no student loan debt. Just car payments. Makes 180K, but also works 80-100 hours a week.[/quote]

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