Everyone wants to be a millionaire. A million bucks in whatever major currency is big money. We envy the lotto winners pocketing megabucks. Though the smart ones among us know that these big money winners seldom live happily ever after, we still feel that a million bucks will somehow set us free.
How many of us know the eighth wonder of the world - "Compound Interest". Even if we know, how many of us have the character to apply the basic rules of investing and compunding a sum of money from an early age - so that we become millionaire a few decades thence?
Yes, there is a wait period but the certainty that we will eventually become a millionaire is a heartening feeling.
Warren Buffett follwed his path to riches by making the eighth wonder his fast friend.
$10,000 invested at 15% compound interest for 35 years will make the coveted million. A little more added to it every year will result in a million more.
So, the challenge is to keep the money invested for the whole period. A tougher challenge will be to earn 15% average compound interest over the period.
Have you found a formula for investing which yields 15% p.a, or have you come across a fund that pays the same return?
If your answer is yes - then you are certainly on your way to the millionaires club.
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