“he who understands it, earns it; he who doesn’t, pays for it.” — Albert Einstein.
Nowadays people try to speed-run the market. Whether that’s day trading, following people’s trades on Wall Street Bets or something else. While day trading can work out for these people. What these people do not realize is that they can be making significantly more money, with a fraction of the effort, over time.
What I am about to explain to you is not a “Get Rich Quickly” kind of setup. Although this method is boring and requires and extreme amount of patience it will make you rich given time, no matter how much money you currently have.
Let’s say you make $1600/mo and you’re 25yrs old. Your rent & bills are $800 of that. Your food and groceries are $400. This leaves you with $400 left. Instead of buying nice clothes or spending it on unimportant entertainment, put it into a Roth IRA account continuously every month. With an expected annual return of 8%. If you were to keep investing until you are age 65 you would have $1.24 million. With an income of $19,800 each year you could become a millionaire.
That’s only $192,000 invested for a $1.24 million return. Even better, half of that money was made in the last 8yrs of your 40yr investment. If this does not show you the beauty of compound interest, I am not sure what will.
