Wednesday, February 1, 2012

How to Become a Millionaire with Only $10,000

So I am taking FIN 300 (Intro to Finance for all non-finance majors) right now.  The other day, my professor told us that there are three ways to get rich:

  1. Marry Money
  2. Inherit Money
  3. Invest Money slowly over time
So how does that work for me: 
  1. Marry Money--Since I'm already married and have merged bank accounts with my wife, I've pretty much maxed out this option.  
  2. Inherit Money--Being the youngest child, my claim on the "birthright" is pretty non-existent.
  3. Invest Money slowly over time--This seems to be my best shot at becoming a millionaire so I found a website that will show me how to do it.
To see how it's done, click the link and then enter the information below: How to Make a Million with Only $10,000

Enter the Following
  • Ending Value: 1000000
  • Beginning Value: 10000
  • Number of Periods: 40 
    • *A period is generally considered to be a year
Thus, with a principal investment of $10,000 at age 25, with compounding interest, I should be a millionaire by 65!

Anyone see a hole in my plan?  Help me out you finance majors.

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