Become a Millionaire From Just 4 Summer Jobs
Scott Burns has a simple recipe to become a millionaire:
Let's suppose that you are 17, in high school and willing to work. Let's also suppose you can clear about $2,000 over the course of a summer.Now I see why Albert Einstein called compound interest "the greatest mathematical discovery of all time".
If your money is invested in common stocks and you achieve the average compound annual rate on large-capitalization U.S. stocks, 10.7 percent, your account will grow to $9,378 at the end of the fourth year. Invested in the same way, with no additional savings, the account will grow to:
• $25,917 by the time you are 30,
• $71,625 by the time you are 40,
• $197, 943 by the time you are 50,
• $547,037 by the time you are 60,
• And $1,114,424 by the time you are 67.
via The Seattle Times
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2 comments:
Nice. That should be within reach of just about anyone. All it requires is being willing to set a little aside and not touching it for 50 years. Not many people have that kind of restraint.
BTW did you know there are skills a high school dropout can pick up that bring wages over 100K yearly? Sometimes a lot more. These jobs are going begging for lack of trained people.
Another way for high school graduates or dropouts to get rich is by learning rudimentary business skills. More people get rich in america through small business than any other way. Sometimes it takes a few tries, but success isn't that uncommon.
(Savings)*1.r^t
where r is your annual return and t is the number of years you'll be earning that return.
The rule of 72 is another quick way to get a feel of how a relatively small sum can grow prodigiously. Divide 72 by the average annual return, and that is roughly how often your money will double.
If you expect 10%, 72/10=7.2. $10,000 at age 20 means
27 = $20,000
34 = $40,000
41 = $80,000
48 = $160,000
55 = $320,000
62 = $640,000
69 = $1,280,000 (roughly).
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