Budgeting & Aspergers

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Did you know that it doesn't take much to be a millionaire especially if you are young. All it takes is to be able to come up with an additional $300 per month. So if you tutor 12 hours per month, you will be able to retire with an additional $1 million.

7% over 30 years = $340,058.83
8% over 30 years = $407,819.56
9% over 30 years = $490,707.13
10% over 30 years = $592,178.48

4% over 40 years = $342,091.85
5.5% over 40 years = $491,780.21
7% over 40 years = $718,686.40
8% over 40 years = $932,603.46
9% over 40 years = $1,216,376.80
10% over 40 years = 1,593,333.20


Amounts are estimates are all are rounded down. There is no guarantee that you will be able to sustain these investment gains and as we have learned from last year and in 1931-1932, losses can be quite significant. Long-term investing is the key to have the potential for wealth building and to outpace inflation. One should never invest in something that is too volatile and should only invest at the risk level in which they feel comfortable. Consult a financial professional on this and other information. However, budgeting is the number one way to generate wealth and so is time as illustrated above.

Don't forget inflation. A million may not be worth very much by the time you retire.

Even 4% return a year is a lot. I know, because I've invested in the stock market for twenty years, and what with all the ups and downs, my average annual return has been more like 2.5%.

Depends on how you are invested... 10% per year average rate of return is not unrealistic for somebody who has a higher risk tolerence if they are invested over a long period of time. For low risk tolerence, your insterest is whatever the bank will offer you on your savings account. Mutual funds are better for growth rates. I am not a financial advisor, I am not licensed to give advice. My father however is, and I hear quite a bit from him about investments all the time. It is possible, but unlikely, for someone to get a rate of return of 20% over a long period of time, but that is unlikely, and in the high risk category.

don't forget, tho...we are America...the land of the fee...

still, saving while you're young is a great idea...who knows if Social Security will even be there by the time you need it?

The average rate of return from the stock markets is about 8% - 12%. Now, in the last decade the rate of return may be about 2.5% giving the 2 downturns but most of the time, the stock market is for long term investing anyways, not short term gains.

Now, it is possible to get an investment return of 20% but that involves quite a bit of risk and work. Rental Real Estate is a good option for a higher return but you have to do quite a bit of work and there is more risk involved. The same goes for owning your own business.

I've noticed the long-term rate of the stock market is around 6.67% nominal or 3.67% to 3.92% real over the last 104 years assuming that capital gains account for only 60% of the overall wealth accumulation and dividends count for the other 40%. I'd rather put in the 6.67% figure than the 10% figure so I'll save more and be more likely to live a comfortable retirement than if I use a higher estimate.