How To Turn 100 Into 500
Here’s a question…
It took 240 years for the AGGI to go from 0 to 1, i.e., to reach 100%, and 29 years for it to increase by another 45%. In terms of CO 2 equivalents, the atmosphere in 2019 contained 500 ppm, of which 410 is CO 2 alone. The rest comes from other gases. CO 2 is by far the largest contributor to the AGGI in terms of both amount and rate of increase.
What monthly return do you think it takes to turn $10,000 into $2 million in 5 years.
- Find many great new & used options and get the best deals for How to Turn $100 Into $1,000,000: A Kid's Guide to Earning, Saving, and Investing by Matt Fontaine, James McKenna and Jeannine Glista.
- -nToday we discuss how to turn $100 into $1,000,000. Enjoy!n. My Private Stock Market Group: https://financial-education2.teachable.com/p/in-jeremy-s-stock.
- Imagine you put $1000 into a bank with a 10% monthly interest rate. In the first month, you make 10% of $1000, which is $100. The second month you make 10% again, only this time on your initial investment ($1000) plus the interest made from the previous month ($100). So rather than make $100 again, you instead make $110.
Turn 500 Into 5000 Quickly
A 30% return?
A 50% return?
How about a 100% return – that sounds more like it doesn’t it?
It’s easy to think that making a huge amount of money like 2 million requires a huge return. But it’s not actually the case….
To turn 10,000 into 2 million in 5 years you only need to make a 10% return a month.
How can this be?
Simple, with compounding interest.
In today’s post, I’m going to show you what compounding interest is, explain how it works, and show you how understanding it can allow you to turn $500 into $46.4 million in just 10 years.
Sound interesting?
Let get to it.
The Greatest Mathematical Discovery Of All Time?
Compounding interest is the greatest mathematical discovery of all time.
Think I’m exaggerating?
Eisenstein seems to think so…
“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it” – Albert Einstein”
And he’s much smarter than all of us, so let’s take his word for it.
So, what really is compounding interest?
The simplest way to explain it is that it’s where you earn interest on top of interest.
Here’s an example…
Imagine you put $1000 into a bank with a 10% monthly interest rate.
In the first month, you make 10% of $1000, which is $100.
The second month you make 10% again, only this time on your initial investment ($1000) plus the interest made from the previous month ($100).
So rather than make $100 again, you instead make $110.
As this continues the amount you make each month gets higher and higher. At the end of the second year, for example, your $1000 is $9849. After 5 years, it’s over $200,000.
And that’s what compounding interest basically is.
Making interest on-top of interest. The more money you have the more you make (and the faster you make it).
And that’s it, that’s all there is to it.
Not that hard after all, eh?
How Compounding Interest Will Help Your Trading
In a practical sense, compounding interest isn’t that useful; we can’t use it to enter traders nor can we use it to create a trading strategy.
But simply understanding what it is and how it works can help us.
Here’s why…
Most traders, especially beginners, have widely unrealistic expectations of how much money they can make a day, week, month or year.
Some think they can make 1 – 5% a day – that’s CRAZY.
How To Turn 100 000 Into 500 000
Do you have any idea of how much that ends up being?
These expectations, because of how unrealistic they are, cause traders to take silly risks; risks that ultimately result in big losses.
By understanding how compounding interest works, however, you realize that you don’t need to make loads of money every day to be successful.
Consider the following scenario…
Let’s say you start trading with $500 and manage to make 10% a month, which is certainly possible.
After 1 year you have $1569.
Not bad…..but not enough to buy a Lamborghini either.
But look what this turns into over the next few years assuming you continue to make 10% a month…
How To Turn $100 Into $500
Year 2: $4924
Year 3: 15,453
Year 4: 48,498
In year 5 you make 152,207 – now we are hitting some high figures.
And it continues to get bigger…
In year 10, for example, assuming you keep making 10% a month, you’ll have…..wait for it…..
46.34 Million!
With that kind of money, you really can buy a Lamborghini AND a Yacht.
So you see, you don’t need to start with a lot of money or do particularly well to make big money.
Sure, in the real world you’re not going to make 10% every month, or even at all actually – you’ll have a few where you won’t make anything.
But even so, you’ll still make something big if you keep going.
In fact, if you only make 2.5% a month, which is even more achievable than 10%, after 10 years you’ll have $11.1 Million – more than enough buy a Lamborghini.
Summary
So is compounding interest the holy grail to turning a small account into a big one….not quite. But knowing what it does gives you a better idea of what to aim for and expect, which, at the end of the day, does make it easier for you to make money.
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Eli Dangerfield (@Elidangerfield) is just the man you want around when it comes to helping your business flourish. Why? Well, because he’s done it before, with himself and thousands of others. He is a millionaire at 21.
It’s hard enough to find a millionaire who’s 21-years-old, especially down in Adelaide, Australia, where he lives.
Eli owns his own thriving watch company called Elmore Lewis Watches, which he put together as a teenager. Growing up, he lived in an average family until his mother got into a serious car crash that had left her unable to work.
Eli wanted to ease the financial burden so that the family could live comfortably. He experimented with many different ideas that he found with a quick google search of “how to start your own online business.” After scrolling through Facebook and seeing numerous ads for eCommerce companies making millions for selling such simple products, with very clever advertising, he got an idea.
Before moving on with the idea he needed to take the whole ordeal step by step in order to stay organized and ready. The product of choice to sell was easy, watches as he always had a passion for watches growing up, so it was perfect. Unfortunately, to make this process more difficult, he had to do it all on his own. No one in his family ever owned or had experience with what it took to own his own business. He had to spend many days staying in and researching all that he needed to know in order to build the best brand he possibly could.
After writing down the whole process in which he would follow to get to the top, he managed to make it big. People heard of his success story and flooded his social media with questions about his successes and about how they could do it too, after all he was only 21-years-old and a millionaire with his brand rating sitting at 5-stars. He figured that the smartest move would be to start his own online course outlining the process to make good money online.
He now works with thousands of people to get them out of debt, and their products into the hands of consumers everywhere.
During the process you will feel stressed and worn down and it’s up to you to figure out what needs to happen to control this. For Eli, he took on exercise and swimming in cold lakes to clear his head.
Things won’t always be rainbows and butterflies, they never always are. What is important is that you remain positive through the tough times and surely you will get to the good times.
It won’t happen overnight, it’s a work in progress and that’s why that is one of the first steps that are taught in Eli’s training program. You need the right mindset going into this sort of thing, your mindset is going to be the “make it or break it” of the whole process.
Eli has one last piece of advice to share, he says “Knowing your numbers is the key to scaling your store or business in general. In regards to your paid advertising, if you know that when you spend $1 in ads, you make $5 back, it becomes a process of aggressively yet sensibly doing your best to spend as much money as physically possible before you reach a point of diminishing returns. For example, if you know that when you spend $100 a day, you make back $500… why not scale up and start spending $1,000 a day to make back $5,000… obviously it isn’t that easy, but that’s the concept behind it… know your numbers, and you can scale. ”
To find out more about Eli’s business, you can find him here @Elidangerfield
(No Deccan Chronicle journalist was involved in creating this content. The group also takes no responsibility for this content.)
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