The easiest way to become a millionaire is super simple to set up and you can get started today. By doing this one thing you can all but guarantee you will become a millionaire at some point in your life.
So what is the easiest way to become a millionaire? Utilizing the power of compound interest by setting up a simple investment savings plan. With the power of compound interest your money will grow exponentially over time. Before you know it you will have reached your goal of becoming a millionaire.
â€œCompound interest is the eighth wonder of the world. He who understands it, earns it; he who doesnâ€™t, pays it.â€Albert Einstein, a very smart human
Follow the steps below and you will be well on your way to becoming a millionaire.
Open an investment savings account
Set up automatic deposits to automate your savings
Now sit back and watch your money grow.
Based on the average historical return of the S&P 500 the table below shows how your weekly and daily savings could grow and help you become a millionaire.
|Daily Savings||Weekly Savings||Years to $1 Million|
If this seems like a lot to you, try tracking your expenses for one week and then review it to see what all you could have cut out. You’ll likely be shocked at the amount of money you waste on a day to day basis.
What do we recommend to automate our savings?
Currently, we like BettermentÂ for their automated investment savings accounts. We have used Betterment for years and we really like it for all its features, various types of accounts, automated goal tracking, forecasting, and simplicity. It is really easy to get set up and is perfect for the non-finance people that need things explained in simple terms.
If you want to learn more about the different accounts we have set up you can read our article on how to automate your savings.
Check out this funny (and educational) video explaining compound interest from HBO’s Hard Knocks
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