Millennials — listen up!
Quadruple your money? I know what you’re thinking: this must be a scam!Spoiler alert: this is not a scam, but rather a proven outcome if you use one simple trait: patience.
Patience will make you wealthy…
…so that you can retire easy (and perhaps early!), pay for college for your kids, or accomplish any other financial goal you set. Here’s an example:
- You invest $100, into a
- S&P500 index fund (tracks the performance of 500 of the market’s best stocks)
- In 15 years, you quadruple your money:
Boom. Quadrupled. You did ZERO work to for 3/4 of that money.
Those earnings are like FREE MONEY. Here’s another scenario:
- The average car payment in the US is now $500 a month
- You just finished paying off a car
- You put $500 a month into an S&P500 index fund
In 25 years, that grows to $600,000. Only 1/4 of that was your own money:
It takes longer to quadruple your money here because you are continuing to contribute more — which just means you are earning more!
You might as well do this, you’re used to not having that $500 in your account anyway. Make that money work for you!
You. Can. Do. This. You can quadruple your money.
Compound interest is a beautiful thing.
Now for the naysayers and the concerned out there:
- “The stock market is too risky” — If 9.5% annual average earnings of the S&P500 over the past 78 years isn’t convincing enough for you, then I guess you should go buy a lotto ticket for a 1 in 14 Million chance of winning. That sounds smarter.
- “It takes too long” — Yes, it takes a while. This isn’t a get rich quick scam. It’s a build wealth the proven way method. PATIENCE is a virtue, especially when it comes to investing!
- “But I don’t have the money” — Just $5 a day can equate to half a million dollars in 35 years. I have faith that you can find the money if you want to put it to work creating free money for you:
- “I don’t want to lose it all” — This is a legitimate fear. So for any financial goals that have a date we need to use the money, like retirement or college tuition, you don’t want to use a S&P500 index fund. There are other investment types that work better.
- “My savings account is safer” — Sure, but you are losing the value of that money due to inflation.
- “But, inflation!” — Inflation is an argument TO invest, not an argument to avoid it.
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Disclaimer: I don’t account for inflation in the calcs above. The important thing to remember is that even with 2–3% inflation a year investing is still a fantastic way to earn money and may be the best way to beat inflation!