How $100 Per Month Grew To $50,000
When you invest, TIME is your best friend.
The longer you let your money mature, the more likely you are to make big returns - plain & simple.
Which is why I’m (aggressively) pushing every person I know to learn how money works and start investing.
If you can be patient, you can be successful as an investor.
Trust me.
You Don’t Have To Invest Large Amounts To Make Large Amounts
One of the biggest misconceptions about investing is that only people who are already wealthy can invest their money.
This could not be further from the truth.
In fact, by investing a modest amount regularly you can create massive financial momentum for your family.
Real life-changing stuff!
This is why I started stashing cash into index ETFs for my son months before he was born.
If you’re a parent of young kids, or if you just want to start saving for your own future, you’ll want to check out these numbers.
Let me show you what can be possible with as little as $100 per month.
Side note: Past results never guarantee future RESULTS…
Before we go any further I’m going to just put this out there - Predicting the future is impossible.
No one knows which of the infinite possible, probable, or highly unlikely future scenario will actually become reality.
So, the best we can do is learn from past events and try to use history as a compass to navigate towards our ideal future.
Fair enough?
Cool 😎
Now, here’s what you came for…
Give Your Kids a $50,000 Graduation Gift
I was born on October 27, 1989 at 12:03 Am.
In those days, the average person had next to no chance of becoming an investor.
There was no internet. No personal finance blogs. No smart phones. No apps that gave you unlimited stock market access.
Nothing.
Back in the 80’s, if you wanted to invest in the stock market you needed a stock broker and a lot of money.
The barriers to entry were many;
Access to information was harder to come by
Brokerages required substantial minimum investments for new investors
Gatekeepers were charging massive commissions for every trade
Modern day assets like ETFs were not yet available
Lucking, none of those issues still exist today.
Now it’s time to start building some serious generational wealth.
How Much Money Would You Have If You Invested Since The Day You Were Born?
What if we could go back in time and start all over again.
How might things have played out differently if the information & tools that we have available today we’re around back in 1989?
🤓Let’s run some numbers.
As I said, I was born in October 1989 and eventually graduated high school in June of 2007.
A timeline which spans 17 years, 9 months.
I found this historical stock performance calculator online and plugged in some numbers to see how much money we could have made if:
We invested $100
In an S&P500 Index Fund
Every month
From birth
Until graduation
Using real life stock market price data
The results were impressive.
In just under 18 years, a total of $21,300 would have been invested. A good chunk of change.
However, that’s not the impressive part.
If all of the dividends received along the way were reinvested, that $21,300 would have achieved a compounded annual growth rate of 9.742% making the final account balance a whopping $54,129 by graduation day.
That’s equal to $32,829 in Pure Profit 👀
Now, this calculation doesn’t account for any fees or taxes, but I think the point remains the same.
Small, consistent actions can create HUGE results!
How Would $54,000 Have Changed Your Life At 18?
I ask this question because I want you to start thinking bigger.
Personally, before I developed the habit of saving and investing on a regular basis I always felt like I didn’t quite have enough to spare.
Like I couldn’t actually afford to pay myself first.
From what I hear, there are a lot of people who feel the same way.
My suggestion to those people is this…
If you don’t feel like you can afford to save anything yet, fast forward life 20 years and imagine that you have nothing saved.
Zero dollars.
Is having Zero Savings Scary? … Maybe.
Is having Zero Savings Exciting? … Absolutely not.
How To Start Savings For The Future
Focus on building healthy money habits right now.
Don’t make it complicated.
No more excuses. No more waiting.
You don’t have to save $100 every month. Maybe you start with $10.
The number doesn’t matter.
The point is just to start.
In 12 months you will be glad that you did.
PS - Do you know someone who is expecting a new addition or a parent to young kids? Share this article with them.
In 18 years they might thank you.