Doing This Can SKYROCKET Your Net Worth

Doing This Will SKYROCKET Your Net Worth!

What I’m about to share will be foundational towards your inevitable wealth-building journey. Every time I run the numbers, it blows my mind! You know what else blows my mind? How many of you guys are not subscribed! So make that happen right now and turn on those notifications.

Let’s jump right in. I tell you guys all the time: respect the three ingredients to wealth building. First, you have to live on less than you make – that requires discipline. That discipline creates margin, which results in money. That money, if you give it the most valuable resource of the three ingredients – time – you will build your inevitable wealth and success.

So let’s talk about the concept of compounding interest. Compounding interest is when your money that’s invested makes money, and then with enough time, that money makes money on that money on top of the other money! You can see how very quickly this adds up as it builds upon itself.

Here’s an example: say you invest $100, and in a year it turns into $110. Fast forward, you make another 10% – you don’t make it on the original $100, you make it on $110 plus the new interest. You quickly see how this continues to build upon itself. As the numbers get bigger, numbers are going to do what numbers do, and some amazing, exciting things start happening.

There’s a reason everybody in finance tells you, “Hey, you got to get to your first $100,000!” Even the great late Charlie Munger says, “You got to do it – find a way to get your hands on $100,000!” I’ll add the exclamation point of “Do it as fast as you can!” But why $100,000? What’s so special about that first $100,000?

Let’s do a case study with our favorite Financial Mutant – that’s Manny the Mutant. Here’s what Manny does: he does what all of you should consider doing. He opens up a Roth IRA. Not only does he open up a Roth IRA, he fully funds his Roth IRA at $7,000 a year. He does this by setting up a monthly investment of $583 a month.

He makes an average rate of return of 8% – look, we didn’t go crazy here, we could have done even higher, but we chose a moderate 8%. But look what happens on this journey to $100,000. You can see he’s steadily making his contributions every month, and even with that great behavior, it’s going to take him just under 10 years to reach the first $100,000.

So here’s the question: how long is it going to take him to get to the next $100,000, to get to $200,000? Surprisingly, it’s almost half – only 5.4 years! $200,000 to $300,000 even faster: 3.7 years. But here’s the magic of compounding interest: what took him almost 10 years to get to the first $100,000, the journey from $500,000 to the first million is only going to take 7.8 years! Do you see what he did? Fivefold in 2 years less! That’s the power of compounding growth and letting your money work as hard and even harder than you can.

If you think 9.6 years is too slow, guess what? You can control that by investing even more. This is why if you want to know how much you should save, go to moneyguy.com/resources. We have a resource on what 25% can do for you because that is the number we think you should be actually saving and investing. I understand in your 20s this is aspirational, but 30s and beyond, you really need to be committed to making this happen.

Guys, let us continue to love on you – go to moneyguy.com/resources, get tons of free content, and we’re going to be your co-partners on figuring out how to get you to your first million!