It takes the average millionaire 28 years of investing before they hit that 1 million dollar mark. The lesson is clear: consistent, long term investing is the surest path to success. But, what most people don’t realize is that even a small amount of money can get you there. Just $4 a day - that’s right, what we would spend on a latte- could turn into over $4M if you invested long enough. This is based on the average annual return of the market as measured by the S&P 500 of 10%. If you doubled that to $8/day, you could get to double the returns.1
Remember, if you have high cost debt like credit cards, pay these off first since the rate of interest is usually about 20%, which is double the average return of the S&P 500. Learn how to get out of debt here.
According to one of the largest studies ever on millionaires, building wealth isn’t about luck. Smart spending, consistent investing, and avoiding debt were the keys to hitting that million dollar mark.
Many millionaires also follow some easy to follow habits to help accumulate wealth:
Not sure how to get started? Download the app today to learn more about Mogo and how we can help you take steps towards healthier financial habits. Download the app on IOS here and on Android here.
–The Mogo Team
1 - Past performance is not indicative of future results. For more information on historic average annual returns for the S&P 500, see: https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp.