How To Be A Millionaire: The Science of Compound Interest

1. Warren Buffet's life

 

Warren Buffet's life is a case study of Compounding!

 

Age:

14 ~ $5k

21 ~ $20k

26~ $26k

30 ~ $1M

33 ~ $2.4M

35 ~ $7M

37 ~ $10M

39 ~ $25M

43 ~ $43M

44 ~ $19M

47 ~ $67M

52 ~ $376M

53 ~ $620M

56 ~ $1.4B

58 ~ $2.3B

59 ~ $3.8B

66 ~ $17B

72 ~ $36B

83 ~ $58.5B

92 ~ $109B

 

The earlier you start the more you make!

 

If you invest $1,000 a month it takes 4 years to reach $100,000

 

But it only takes 2 years to grow from $700,000 to $1,000,000!

 

Eventually you will reach a point your money makes more money.

 

2. The math behind Compounding

 

Compounding is like a snowball effect for your money.

 

- You start with some money, say $100.

 

- You invest it, and it earns you more money over time, let's say $5.

 

- Instead of taking that $5 out, you leave it with your original $100.

 

- Now, your total is $105, and your next earnings are calculated based on this larger amount.

 

- This keeps happening, and your money keeps growing faster and faster.

 

- It makes your wealth grow exponentially.

 

 

If you save $10 a day:

- in 10 years, you will have $36,000

- in 20 years, you will have $90,000

 

If you save $10 a day, and invest it with 10% return:

- in 10 years, you will have $62,000

- in 20 years, you will have $600,000

 

If you save $20 a day, and invest it with 15% return:

- in 10 years, you will have $160,000

- in 20 years, you will have $2,000,000

 

Compound growth is like a money-making snowball that gets bigger as it rolls, thanks to the money it picks up along the way.

 

Warren Buffett was a kid hustling for pennies during the Depression, and at 11 years old in 1942, he launched his lifelong love of investing when he bought his first stock.

 

Three shares of an oil company called Cities Service at about $38 each. He sold his shares soon after at $40 each.

 

His first trade: he invested $114 and made $6.

 

Today he manages $301,636,932,292! $301 Billions

 

Start Early

 

If you had saved and invested this money by age 11, just like Warren Buffett did, and knew about compound interest, how much money do you think you would have today?

 

Would you be a Millionaire by now?