I was checking my inbox and I got a very cool email from one of our online investment accounts. As it turned out, one of our accounts grew a whopping $0.20 in dividend earnings. I was ecstatic! Heck, anytime any of our investments pay off, I am excited – even if it’s a measly $0.20. True, no one ever retired on $0.20 but it is a step in the right direction. Still, I don’t really know of anything you can buy with 2 dimes nowadays, except maybe 6 minutes in a metered parking space (OK, this was still fresh in my mind because I had to pay for street parking that morning! LoL)
So off I went to a trustee ol’ online investment calculator. I used Dave Ramsey’s version since it popped up first in my Google search. For the simple Math, I have $0.20 to invest everyday so that equals to about $6 per month. Let’s assume that I am going to invest this into an account that yields 10% interest every year (Hey, this isn’t too farfetched; my 401K grew by over 10% last year.) If we leave it untouched for 25 years, how much would you have in the account?
What’s the moral of this story?
The power of compounding interest strikes again! And time could be a very powerful ally in investing, if you let its magic happen naturally. Imagine if everyone had the discipline to invest just $20 a day instead of $0.20. That $20-per day investment will turn into a whopping $780,000 for retirement in 25 years! It really is that simple. You just need to get into the habit of investing for the long haul. Heck, you can even start by investing just $0.20 per day!
What have been some of your eye-opening investment moments?