Turn $100 Into $100,000 & Into A Million For Retirement
Most of the hard work is done with compounding when you have a decent amount of money. That’s why $100 is an excellent amount to begin your journey to wealth.
Once you start investing with that amount, you can quickly turn it into your first $100k. With an amount of money as large as that, compounding adds significant amounts to your balance while being small enough to potentially reach it early in your career.
Want to grow your wealth even more than that? Here are some ways you can turn those $100,000 into $1 million so you can enjoy the perks of being a millionaire by the time you are ready to retire.
Reinvest Your Dividends Somewhere
Dividends are typically paid out of a company’s operating earnings, and they don’t depend on the market’s current situation. When that cash shows up while stock prices are low, that same amount can buy many more shares.
It doesn’t matter if the given dividends are small and the temptation is big. Put them all together, and they can add up to a decent amount of your total returns. Remember, it doesn’t need to be the company that paid them. Just invest the dividends somewhere because that can be an important source of the compounding that will build your wealth.
Keep Adding To Your Balance Along The Way
A significant boost on the $1 million journey is to keep adding new money into the equation as you can. Just saving an extra $100 a month could take off two years of that time, or saving $1,000 per month will allow you to reach the millionaire status in just over 16 years.
Try To Invest To Beat The Market
It’s hard for professional investors to beat the market, but it doesn’t mean individuals can’t do so.
Focus on smaller companies. They may be earlier in their growth curves and, of course, the opportunity to increase in value by a more significant percentage than the market’s current behemoths.
The advantage of beating the market is that you can reach that $1 million faster if you succeed. The disadvantage is that there are no guarantees that you’ll be able to do so.
Choose Any Approach, But Start Today
No matter what approach you take, reaching the $1 million mark will take you at least a decade, or more precisely, over two decades. The sooner you get started, the sooner you have a chance of reaching your goal.