If you could double your penny every single day for a month you will have over $ 5 Million.
Speed is the most important factor to grow your money and build wealth. You need to know how fast you can double your money.
Now you are at this stage, every time you double your money , you are making millions. If you look at the penny's doubled chart, it would seem like nothing much because you are only making pennies but, as your money grows and compounded the gets bigger to a point where you weren’t doubling pennies , you are doubling millions.
Anyways , I got some good news and bad news. Ill start with the Bad News
The Bad news is that you wont be able to consistently double your money every day. The good news is that even if you have a penny to your name you can be a multimillionaire if you can double that penny 30 times over your lifetime.
The better news is if you have $5.12 to your name , you have a head start , you’have already already doubled your penny ten times and so you only need to double your $5.12 20 times in your life time to be a multimillionaire and if you have $5240 to invest , you would only need to double your money 10times over your lifetimes to be a multimillionaire.
Doesn’t seem so unrealistic now , Does it ????
The Key is you need to know how you can double the money and im going to be showing you how you can do it in the most efficient way possible. The first step is that you need to start understanding what changes the speed of your money.
Lets hypothetically assume that you have right now $5242 to invest, I know quite the random number right???
You need to double the above amount 10 times to get that $5 million dollar number. But the question is :-
How do you do it ?
If you put your money in a traditional savings account paying you 0.05% p.a. , that means it will take you about 138 years to double your money. i.e it will take 1300 years to reach the that 5 million dollar figure. If you put your money in a CD i.e Certificate of Deposit; you will be earning 2.5% p.a it will take you 28 years to double your money. Which means it will take 280 years to reach the $5 million mark. The good new is that your Great Great Great Great Great Great Grand kids will getthe 5 million. If you put your money in a passive investment like the stock market and real estate,where historically these investments have averaged around the 10% a year now you can double your money every 7 years and now you can double your money 10 times during your lifetime. But, wait there is more , if you invested additional money $10 a day into your investment fund. , now you can cut that time in half to like 35 years.
Now , if you are brave enough to venture out on your own anddecided to start your own business. , now you can see the returns of 30 to 100percent a year. We are assuming we stick to the lower end of just getting 30% return in a year. Now , you can double your money every 2.6 years which means you will be able to double your money 10 times within a few decades and achieve your multi millions.
Keep in mind that we are just starting off with $5000 and not investing another penny. If you have invested more money, you can actually get more millions a whole decade sooner. The point you willhave to understand about the speed of your money is that more speed comes with more risk. If you look at your savings, you have no risk because you can access your money easily; if you have parkedyour money in a CD, the return is little betterand higher , but the only risk is that you wont be able to access your money after a certain period of time. If you get into the arena of stock and real estate, there is more speed , but there is no guarantee that you will bemaking more money. There are lots risks involved , but there is the potential to make a higher returns as well. By now you will be familiar with the returns in Real Estate and Stocks. Now if you come down to do business, there is more speed , but there is more risk, there is a greater chance of business failure due to internal and external factors, but there is incredible potential to make greater returns.
The key to all of the above is that you need to align your risk with your goals and if you want to speed up the process even faster, then you will need to add in more money. But also there ways to improve your returns as well as lower your risks.
There are 3 different ways to do that , i.e
Savings- Your savings are not there to make you wealthy, you can see that very clearly by looking at the interest rate or the rate of return of a savings account. It doesn’t mean that you are just saving money and do nothing at all. You can keep your money safe in the savings account while getting better returns in moving your money to an online banks, where you can get a better rates. Look into your local area to see if you can take advantage of the benefits of Online banks.
Active Investing – Active investing can make you the biggest returns on investment. You are not only investing your cash, you are also investing your time and effort to make your investment grow. The simple truth is that the upside of actively investing into a business is limitless. If you remember Nike, DELL,HP etc have all started from $1000 or even less. Now these brands are massive; you don’t have to build a massive fortune 500 company to become extremely wealthy, but you get the idea. That’s a lot fo upside; however, the downside is that there is lot of risk. Which means you could lose everything that you have made and put into the business or investment. If you are looking to maintain those rate of returns, then you should have an entrepreneurial mindset, which isn’t for everybody. IF you don’t have the entrepreneurial mindset, then you as an individual would need to focus on passive investments like stocks, real estate or other passive investment vehicles. Anybody can invest into passive investments, I believe you should be investing in passive investments to grow your money for the long run.
Every time you get paid , you should funnela portion of your paycheck into one of these investments whetherit be stocks,real estate, gold , silver, cryptos etc. it doesn’t really matter, all you need to do is funnel part of your money into passive investment so as to make your money work and grow your wealth.
The more money and time you have, the more wealth you will be able to build.
One thing I would like to mention is that lots of folks confuse themselves that passive investing as a way to get rich quick.so, when they don’t see their millions right away, they get disappointed and stop doing it. The reality is passive investing is a way to get rich (ofcourse) and build wealth slowly.
Overall, this is all just a NUMBERS GAME.
You need time, you need money.
You cant change how much time you have , but it pays to start early however, you canchange how much money you will be putting in. if you want to see bigger returns and see the returns sooner, then you will need to funnel more money.
Ideally, stocks, real estate, crypto's and actively investing into a business.
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