by TonyLiberty
Investing $100 a week can help you retire a millionaire, here’s how:
The power of compound interest — Your earnings start earning their own earnings (over time, this leads to significant growth).
Say you invest $100 a week starting at age 25 and earn a 7% annual return. By retirement at age 65, your investment will be worth over $1.1 million.
This means that over 40 years, compound interest generated an additional $915,571.29 in growth, beyond the initial principal investment of $208,000.
This is why it is so important to start investing early. The earlier you start investing, the more time your money has to grow through compound interest.
I believe that investing in the S&P 500 is one of the best ways to grow your money over the long term. The S&P 500 is 500 large-cap companies in the United States, it’s a diversified index that includes a variety of different industries.
The S&P 500 has a historical average annual return of 11%. This means that, over the long term, the S&P 500 has doubled in value every 7 years.
If you are not already investing in the S&P 500, I encourage you to start today. Even if you can only invest a small amount each week, it will make a big difference in the long run.