These numbers are real assuming a 10% rate of return on the investments. 10% is about what the S&P 500 has averaged over the last 100+ years.

If you save $800/month for 10 years, that’s $96,000 saved. An impressive sum. But if you were INVESTING it the whole time, getting that 10% return you would end up with $161,966. A lot more than you saved, not bad! But here’s where the magic happens. In this example Taylor NEVER INVESTS ANOTHER PENNY EVER AGAIN and just lets that $161K ride for the next 35 years from 30-65. At a 10% rate of return, that $161K turns into over $4.5 MILLION. Wild.

Whenever I post anything along the lines of “Invest this much, it will grow to that much”, I always get complaints like “NOBODY HAS ANY EXTRA MONEY”. Well, we all have choices. Know any twenty-somethings who have a roommate? Know any that don’t? That is ONE choice for TEN years with EVERYTHING ELSE EXACTLY EQUAL that turns into $4.5 million. Our lives are filled with those choices. If you can carve out a few hundred bucks per month that you DON’T spend and get it investing you’ll be rich!

Let me pre-address other complaints:

• “I don’t want to wait until I’m 65 to be rich”. Cool, then don’t. You know how you get rich sooner? Invest more, earlier. I’m for it. But spending all your money and never saving and investing just means you’ll be broke forever.
• “It’s too late for me I’m X years old”. No it’s not. I have very few followers in their 80s+ which means if you’re reading this you likely have MANY DECADES left to live. Get started now, yourself in 10 years will be so grateful you did.
• “I guess Taylor never had any fun in her life”. WHERE YOU GETTING THAT BRO? She’s a twenty-something with a roommate. Sounds pretty fun to me. If you think the only way to have fun is to spend all your money, I have news for you. You’re the one who is not fun.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy

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By: Gabriela Gonzalez
Title: Turn $800/month into $4.5 million: the magic of early investing
Sourced From: www.personalfinanceclub.com/turn-800-month-into-4-5-million-the-magic-of-early-investing/
Published Date: Wed, 18 Dec 2024 02:55:55 +0000

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