Want To Be A Millionaire?

I'm sure you've probably read about the power of compound interest. And how if you invested $ 10,000 at 10%, and let it compound for 50 years you would have just over $ 1 million. 

Now that's all well and good, but who wants to wait 50 years before they can enjoy the fruits of their labor.

A quick tweak of the spreadsheet tells us that if you can increase to only 15% a year, your return we would look at a million dollar balance in about 35 years, which also would bring in around $ 150,000 more each year after that .

25% return per year, your $ 10,000 to one million in about 22 years, the production of another $ 250,000 a year in additional cash flow.

This brings us to an important point. How much is enough?

How much money do you need to live your life?

Well, it's all relative to the lifestyle you want to lead. A good way to calculate how much is enough, is to determine how much of your life now. Calculate how much money you would need to earn to replace your investment returns. To your current income needs

If you earn $ 50,000 a year, then it will only be found in the above example to replace your investments. Approximately 15 years at 25% return on your income

Calculate how much money you need to live the lifestyle you want, and then take that and figure out how much money you need to invest to produce. An equal income

You might just be pleasantly surprised at how much you really need, and it's not that far out of your reach.

Are these returns really possible?

The figures we have discussed above are really just to give you. An idea of ​​what is possible Again everything is relative to how much work, time, money and effort you are willing to make to secure these returns.

A well managed fund gives you about a return of 10% per year, but if you want to take it to the next level, things then the only way to do this is to learn how to invest your own money. Return of 25% and higher are certainly possible, people make returns like this all the time. You just need to learn the strategies and apply. There will be some bumps in the road ahead, but consider the alternatives. Sure

Your task for this week is to set aside some time and figure out how much money you need to replace your income. Work out all your living expenses and any other costs that you should consider, and make that your first goal.

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