If you invested $10 a day or $300 a month into an index fund that tracks the S&P 500 with a 10% average annual return, your account will be worth $1,019,000 in 35 years. The S&P 500 is basket of the top 500 companies in the world.
You would own a piece of the most successful corporations in the world. There will be a few down years, but over the long-term, the stock market goes higher. The S&P has averaged about a 10 percent annual return since the 1920’s.
I know 35 years to become a millionaire sounds like a long time to most people. But 35 years is going to pass by anyway, so you may as well build some wealth in the meantime. The older you get the years pass by faster and faster.
Once you get you’re your 40s, 50s or 60s you want to look back at can look back at all the work you have done and be proud that you have some financial security to show for it.
The masses will live check to check for their whole lives and will always have to work to for money. You don’t want to live like that especially when you reach your elder years. You want to live with dignity and have more options as you reach middle age and beyond.
Only about 5 percent of population can retire with financial peace when they get older. You can be a part of the top 5 percent. All it takes is patience and consistency. No effort or talent is needed. Just consult with a financial adviser about automating your money into a brokerage account and let the money work for you overtime.
People waste $10 a day on all kinds of needless consumption. Junk food, entertainment, impulse shopping, etc. There is no excuse for anyone not to allocate $10 toward their future financial freedom.
Since this is a passive wealth building strategy that doesn’t require much time or energy, you will have plenty of to work on many other entrepreneurial endeavors. It’s good to have multiple wealth building strategies at play. Always remember to stay focus and stay dedicated to your dreams.