Is possible to make a million dollars investing a little amount per month, but few people do it. Almost every person in the world wants to become a millionaire because that means, among other things that you don’t have the need to work for having a good standard of life. Of course, most of us see that possibility far away and a small group of us already have the will to make it necessary to get there.
If you are interested in how to make a million dollars investing I recommend you read this post to the end. I will share with you the option I decide to follow in my path to one million dollars.
Compound interest: the path to make a million dollars investing little
In fact, compound interest is a simple thing, you reinvest the interest you earn on the same financial instrument. That way you will earn more money from interest in the future. This is a snowball for finances that lead you to make from a little ball (50 bucks a month) an avalanche (1 million dollars). The difficulty is not the compound interest, is finding the right investment instrument.
The problem is that exist hundreds or thousands of its and many have conditions and requirements that can reduce our earnings. For that, is important to read and inform us a lot before choosing one to make sure that it is the right for our personal interest. Every person has his own necessities so is up to each one to do this proper research in the traditional finance market.
If you have problems saving money I recommend you read Money saving systems
Obviously, some general points are:
- The investment instrument gives more than a 5% APR.
- Allows you to make additional contributions without penalties or fees.
- Have an automatic or semiautomatic compound interest.
- You can close the operation and withdraw money when you need it with no penalties or low fees.
My path to make one million dollars
Sadly, I am Cuban and live in Cuba, so I am unable to access to traditional finance market due to US sanctions against the totalitarian government that rules my country. Luckily for me, since 2009 exist crypto so I can take advantage of that, especially from Hive and his HBD Saving system.
As you may or not know, right now (and hopefully for the next 5 years minimum) Hive gives a 20% APR on all the HBD staked on Savings and you can compound that interest on a monthly frequency. This system allows you with an initial investment of 200 USD and a 50 USD monthly additional contributions to do compound interest and reach one million dollars in 29 years. Of course, this is theoretically because the 20% APR is not permanent, is possible that the community and the witnesses reduce it in the future.
Screenshot of the thecalculatorsite.com
Now let’s clarify, yes I say 29 years. Remember, you are investing a very small amount each month. If you only save that money you will get in the same period only 18200 USD. So is worth it. Here is one of the lessons is not about the amount, is about time. Start right now even if you prefer a traditional finance instrument that offers between 5 or 8% APR, because with the same amount you will get a range of 42500 - 76700 USD dollars. Of course, you can put in more money and get sooner to the goal.
You can run your own numbers in any Compound Interest Calculator
However, as I say, is not sure that 20% APR endure three decades, let’s run a more realistic scenario based on my actual economical capacities. Let’s define them:
- An initial investment of 113 USD and a monthly contribution of 5 HBD (precedent of author rewards).
- 20% APR for the next 5 years, 10% APR for the next 10 years, and 5% APR for the next 15 years.
Doing this I will get $1,322.23 after 5 years, $5,627.78 after 15 years, and a total of $14,568.35 from an investment of $3713 (you will get a similar amount with a fixed 7.5% APR every year during 30 years). Of course, this is not so much, but if you raise the monthly amount over 50 dollars you can end with more than 65k.
I hope you understand the point that I try to show you and the opportunity in front of you. HBD Savings is a tool that can help you to secure your future, is reachable to all of us, use it. But if you prefer traditional markets, now you know what to expect, what to look and most important when to start: right now.
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I want to earn
its really?
The APR don't always was 20%, community and witnesses increase from 0% in a progresive way until let it fix in 20%. The reverse thing can happend in the future when reduce the 20% can be necessary for protect the network.