(NOT MY 💰 CHART. I’m only 36. 🤣 This is for people starting at 35 to have $1M at 65). Isn't this mind-boggling?
For the first $100K, it takes almost 8 years, but in a little over 6 years after you have a little momentum going, you can increase your net worth by another $400K.
All it takes is $10,000 a year or $833/month, and you will have $1M in 30 years.
✌The first $100K took 7.8 years but the last 😈 $100K to $1M only took 1.3 years
🔥This is the true power of compounding interest. 🔥
Compounding interest isn't anything you can invest in, it is simple result of letting your money be invested early on, and leaving it in there, continually growing until you are ready to withdraw the money to use it.
🍎Think of it loosely as planting a single apple tree.🍎
Each apple 🌳 tree is $833/month, and you get 12 apple trees 🌳🌳 planted a year for about $10K a year.
Over time, these trees grow bigger and with compounding interest, and start to grow more apples 🍎that you can eat from (dividends) or use to plant even more trees (reinvesting the dividends for more growth).
At the end of 30 years, you have an orchard now full of these trees 🌳🌳🌳, still giving off more apples 🍎- at which point you can start to generously give them away if you wish, such as donating your money to charities or eat them (spend it to stop working & enter retirement).
The more you plant early on, the bigger your orchard will be at the end. 🌳🌳🌳🔥Or, you could get an orchard just big enough, and retire early.
👩To play around with your retirement numbers, click on the link in my bio and this image to go to a calculator.