The Magic of Making Your Money Work While You Sleep

Let me tell you about one of the simplest yet most powerful secrets in investing: compound interest. It’s not just a finance term—it’s like planting a money tree that grows while you’re busy living your life. Here’s the kicker: the earlier you plant that tree, the bigger it grows.

Picture this: You’re 19 and decide to automatically set aside $150 from each paycheck. That’s $300 a month, tucked away in a stock market account. Over 8 years, from 19 to 27, you’ve invested $28,000. But thanks to compound interest and the S&P 500’s historical 10% average annual return, by age 27, your investment has grown to $48,812. Not bad, right?

Now, here’s the real magic. Without adding another penny, that $48,812 keeps compounding. By age 65, it balloons to over $1.5 million. All from an eight-year commitment. Increase your deposits and expand and diversify your investment portfolio during this time period and the sky is the limit.

The trick? Automate your deposits, invest in a well-diversified mutual fund with a proven track record, and—for the love of financial freedom—don’t touch it. It’s boring. It’s simple. And it works.

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Mitch Jackson | links