CHESSNOID

I read an excellent article about money and the power of compounding. When I went to business school, they taught me about the buy and hold strategy. It really is one of the best principles around. Many rich people have used it such as Warren Buffet. Today of course he is one of the richest men in the world and infamous for his wealth made in stocks. I ran across an article that helps you understand the fundamentals of how the numbers work.

Everyone thinks a million dollars is a lot of money. Well, everyone is right. Where most are wrong is that getting there is possible. I am not there yet, otherwise I would be shopping right now. Instead, I am continuously striving for that milestone. Now, the interesting thing about the article I read is how easy it is to build your money once you have money.

The number of years to the first million are difficult when you look at the time element involved . But as you go to the next box, you can see it is much faster to achieve with the same rates of return.

If you start doing this on a consistent basis, then you will achieve these numbers. The important thing to realize it is possible with planning.

To go from $0 to $1 million:

Monthly Contribution	8% Return	9% Return	10% Return	11% Return
$100	52.9 years	48.3 years	44.5 years	41.4 years
$250	41.6	38.3	35.5	33.1
$500	33.4	30.9	28.8	27.0
$1,000	25.5	23.9	22.4	21.2
$1,291.66	22.8	21.4	20.2	19.1

To go from $1 million to $2 million:

Monthly Contribution	8% Return	9% Return	10% Return	11% Return
$100	8.6 years	7.7 years	6.9 years	6.3 years
$250	8.5	7.5	6.8	6.2
$500	8.2	7.4	6.7	6.1
$1,000	7.8	7.1	6.4	5.9
$1,291.66	7.6	6.9	6.3	5.7

To go from $2 million to $3 million:

Monthly Contribution	8% Return	9% Return	10% Return	11% Return
$100	5.1 years	4.5 years	4.1 years	3.7 years
$250	5.0	4.5	4.0	3.7
$500	4.9	4.4	4.0	3.6
$1,000	4.8	4.3	3.9	3.5
$1,291.66	4.7	4.2	3.8	3.5

By the way, does anyone have a million dollars to loan me? Hello, anyone?