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[The following is a partial transcript of this episode of The Scott Alan Turner Show. Listen to the full episode to hear this story, listener questions, money hacks, and inspiring stories of people that are changing their financial lives. Subscribe to the free podcast on iTunes or Google Play]
If you are looking for some entertainment about the topic then make sure to try out this fun quiz game about stock market basics.
Today I’ve got the quickest and easiest way to make $1 Million in the Stock Market.
Do this, and you’ll have your dream life.
People that ignore this, and it’s simplicity, or hear what I’m about to say and roll their eyes because it’s not the lottery ticket answer they were hoping for, will forever struggle and end up with less money. And I get it, I ignored it too when I first heard it because I was an idiot and thought I was smarter than I was. I wanted that lottery ticket. And it cost me big bucks.
It doesn’t provide the sexiness and rush of from the bad, biased, mistaken advice out there.
It’s compound interest.
- Oh come on Turner, where’s the lottery ticket?
- Make $3,000 before 9 am tomorrow!
- Anything where with a press of a button money just starts falling from the sky without lifting a finger. Except to press the button.
The make me rich button.
Compound interest is the button. If someone wants pie in the sky, get rich quick, do nothing, just pay your $97 or $297 for the ‘insider secrets’ of making money, just do me this one favor. Give me 30 more seconds and then you can stop listening.
Remember this: Financial Rock Star. Every time you hear rock star, see rock star, are in a checkout line and see a Rock Star energy drink. You remember this advice. Remember Financial Rock Star.Because you’ll understand it someday, like I did. You’re always welcome back, I’m here to help you.
I make no apologies for providing unbiased advice based in reality.
For everyone else, this is the quickest and easiest way to plant a money tree, make your money tree grow, and have a huge forest of money trees. Image you go out each morning with a bucket and just start picking the money off the branches so you can go spend it.
It’s possible to become a millionaire earning minimum wage through the power of compound interest. If you’re current challenge is just getting by today, get through today. But realize this is what you’re striving for. The more you get this, the quicker you’ll get through today, and the next day, and the next day.
The Quickest Way To Earn $1 Million Still Takes Time
A person finds a job, pays off all their student loans by grinding it out, and doesn’t start saving until age 25. They put away $10,000 in a retirement account, and nothing else.
Nine years later it doubles to $20,000. Big whoop, right? They can buy a compact car or a Harley.
In 25 years, it’s $75,000. Sounds like a lot, but it won’t even cover medical expenses when they are old.
No, the real no-so-secret is what happens when you put away $10,000 year after year starting as soon as you can.
In the same 25 years, you’ve got $865,000.
Will people work for 25 years? Yes.
But, here is the secret sauce. In the early years, it really seems like nothing is happening.
- The balances barely budge up.
- Tiny amounts become slightly less tiny.
If you’re like me you’re thinking nothing is happening, let’s go spend the money on a vacation or a house down payment.
It’s when the balance gets really big, when the power of compounding really starts to shine.
Think of it like a population growing. It’s exponential because you have people, they make donuts, wink-wink. And the result is more people making more donuts.
I know some of you listen with your kids and you don’t want to explain where all these people come from.
The ground, my little listeners. They are all grown on People Island from the people bushes. Then they arrive on boats and rocket ships.
Here’s the not-so-secret that most people miss. The big money comes in when you stay in it to win it.
Compound Interest at Work
Imagine you put away $10,000 a year, and in 25 years you would have $1 million.
Suppose you were 20 years old. You put away $10,000 a year, and you hit age 45 with $1 million.
Or the example you really need to hear: imagine you’re 20 years old, you put away $10,000 a year, and you have $5.6 million when you’re 65.
I love that one!
How much did the 20-year-old save? $450,000. Sounds like a lot, and it is. But it’s $10,000 a year for 45 years. Doesn’t include any raises, bonuses, promotions.
But it turned into $5.6 million
Each year the money grows and gets bigger. And then the next year it grows and gets even bigger. I’m not going to walk through an example, you need to see it using the calculator we have on the website. Link is in the show notes. Once you see the chart, it’s an a-ha moment.
The ultimate goal is to have enough money to have some fun now, and enjoy your future. If you got kids, leaving them a legacy may be on your list.
If a person thinks ‘I can’t afford to do that’ Well, they can’t afford not to. They can at least spread the message, which is free.
There are over 168,000 401(k) millionaires just at Fidelity, one of the big investment places. I don’t know about you, but those are a lot better odds than winning the lottery. And those people are millionaires today, because of compounding that started 25 years ago.
Share this big secret with your friends and family. If someone is approaching retirement or already there, your children and grandchildren need to hear this message about saving and investing. You know you’re the smart one, they need your wisdom. This can be your legacy to help them become a millionaire.
99 Minute Millionaire is now part of the podcast. We made it free so you can share it easily.
How To Get Started Investing
The international bestseller by CERTIFIED FINANCIAL PLANNER™ Scott Alan Turner. Choose the right accounts & investments so your money grows for you – automatically. No jargon, confusion, or pie in the sky promises. Just a proven plan that works.