Many people think: "I'll never be a millionaire!" But with the power of compound interest, and time, you too can have a million bucks.
Here's how: Let's say you're in your twenties and you have about 45 years until you want to retire. (If you're older, keep reading-the basic math still applies.)
If you invested $50 a week, in one year you would have put away $2,600 ($50 X 52 weeks = $2,600).
But in 45 years, those cash deposits alone would only add up to $117,000 ($2,600 X 45 = $117,000). How does that turn into a million?
Just add water
Every day that your money is invested, it gains interest, then your interest earns interest-and your savings begin to snowball.
Assuming your money earns about 8% per year, on average-a reasonable assumption-here's how your savings would grow: * In 10 years you'd have $40,000 * In 20 years you'd have $128,000 * In 30 years you'd have about $325,000 * In 40 years you'd have over $764,000