Wealth

How To Become A Millionaire Using Compound Interest

“How to become a millionaire.”

That title can seem to reek of selfishness or greed, but what if you looked at wealth this way:

  1. Wealth allows us to serve and bless the less fortunate.
  2. Wealth enables us to fund the work of our church and other great causes.
  3. Wealth allows us to focus on doing EXACTLY what we’ve been called to do!
  4. Wealth provides income so we can meet our needs when we are no longer able to work.

Perspective matters, doesn’t it?

I’ve tried broke, and I’ve tried not being broke. I like not being broke much better!

With that said, here’s how YOU can become a millionaire:

INVEST and capture the power of COMPOUND INTEREST.

When it comes to compound interest, three things matter a lot:

  1. Amount of money invested (start with whatever you can and work to increase it from there)
  2. Time (start early!)
  3. Interest rate (growth rate of your investment)

Here’s how YOU can achieve $1,000,000 at a constant Interest Rate of 12%:

  1. Invest $85.00 per month for 40 years at 12% annual interest.
  2. Invest $286.13 per month for 30 years at 12% annual interest.
  3. Invest $1,010.86 per month for 20 years at 12% annual interest.
  4. Invest $4,347.09 per month for 10 years at 12% annual interest.

Here are some ways YOU can achieve $1,000,000 in just 20 years:

  1. Invest $1,697.73 per month for 20 years at 8% annual interest.
  2. Invest $1,316.88 per month for 20 years at 10% annual interest.
  3. Invest $1,010.86 per month for 20 years at 12% annual interest.
  4. Invest $768.54 per month for 20 years at 14% annual interest.

Here is how YOU can achieve $1,000,000 with just $300 per month:

  1. Invest $300.00 per month for 473 months at 8% annual interest.
  2. Invest $300.00 per month for 404 months at 10% annual interest.
  3. Invest $300.00 per month for 355 months at 12% annual interest
  4. Invest $300.00 per month for 318 months at 14% annual interest.

For those familiar with investing, I already know one of the biggest questions you want to ask:

“Where on earth do I get 12% annual interest?”

It’s a great question! The number one way to get 50% or even 100% interest is to contribute to an employer-sponsored retirement plan where matching contributions are made. For example, if your employer matches your contributions “dollar-for-dollar” up to 3% of your pay, that is a 100% interest rate that AUTOMATICALLY HAPPENS with NO RISK! It’s called FREE MONEY! Beyond that, I like investing in mutual funds that are older than me and also in other great investments like residential and commercial real estate as well as small businesses.

In fact, I have spread my investments into most of these categories with small businesses and mutual funds being my preferred options. If you are interested, you can view my CURRENT INVESTMENTS HERE.

Are you wanting to break out of the ordinary into extraordinary? My latest book, OXEN: The Key to an Abundant Harvest, can help you grow what you have into an abundant harvest. Read more and purchase OXEN HERE.

QUESTION: What do YOU need to do to become a millionaire? Share with us in the comments HERE.

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