Save money

How to earn a million

Written by loan

In fact, questions like “how to make a million” or “how to earn a million” (or even better — “get a million”) — are of little use. Stash makes sense for something specific – for example, an apartment or a car. However, as an example to illustrate the process of collecting money and investing in reliable tools, this amount fits good.

How long will it take to save a million virtually any?

Will try to simulate the situation.

Let’s say you put 10 000 virtually any a month and, using the advice of our site, successfully put them under 20%, which helps to combat inflation and receive additional income. Let’s do a sample calculation.

In the first year, you simply Deposit funds with small sums to invest, it makes no sense. By the end of the year, thus accumulating 120 000. Then you begin to actively manage their small capital yet.

(The following are the simplified calculations as does a fixed amount of additional savings — 120 thousand a year. In fact, everything will be a little faster — after all, capital is constantly added 20 thousand and the money begin to work immediately, bringing additional interest. On the other hand, it is not always possible to find such a profitable investment that gives 20%, so the calculation time will be relatively correct. Why do such a calculation? Just because tinkering with for months, greatly complicate understanding).

The total amount at the end of the year
The total accumulation at the end of the year (excluding income on investments)
Investment income for the year (20% annual)

120 000
120 000

264 000
240 000
24 000

436 800
360 000
52 800

644 160
480 000
87 360

892 992
600 000
128 832

720 000
178 598

As you can see, in the fifth year the investment income exceeds the amounts that are deposited every year. The output is the amount one and a half times our , which was separated from the family budget. At the end of the sixth year get a sum of considerably over a million. So works the magic of compound interest.

Is it possible to speed up the process?

Of course. Needed for this or a larger initial investment (obviously) or even more efficient management. At the same time, if the goal is to accumulate, the interest rate of 20% per annum looks quite decent: it is considerably higher than inflation and at the same time achievable. To achieve a larger income is also possible, but this is not without risk, which is beyond acceptable for our purposes.

The main conclusion of all calculations given here is to gather 1000 000 really real in a relatively short period of time (compare the attachment size is 10 000 and the final amount), provided a reasonable and effective capital management. In order to enable you to manage your savings and created our website. New materials resource, you will find specific recommendations on investment without much risk. Stay tuned!

About the author


Leave a Comment