At some point, you’ll have enough money saved up where you’ll think, “I should probably invest this somehow.”
Below I explain why investing in stock market can be so powerful.
Invest in Stocks to Grow Your Money
This is the simplest reason to invest and is often at the core of why people buy stocks.
When done right, you can grow the money you invest by anywhere from 7% – 10% per year over the long term.
If you invest $10,000 in the stock market today and it gains roughly 7% per year, you’ll turn that $10,000 into $20,000 in just 10 years without adding extra money.
Now, imagine a longer-term example, where you’re both a good saver and a smart investor.
You invest $10,000 of your savings into the market every year for 30 years.
That’s $10,000 this year, another $10,000 next year, another $10,000 the year after that, and so on for 30 years.
So in total, you will have invested $300,000 in stocks over 30 years ($10,000 per year x 30 years).
And let’s assume you achieve the same average yearly returns we used above, 7% per year.
So you’ve invested a total of $300,000 over 30 years,
But guess how much you have in your account at the end of that 30 years.
That’s truly surprising.
That $10,000 investment per year for 30 years would now be worth $1,010,730.
Bottom line:
Through regular investing, you can turn $10,000 per year into more than a million dollars over 30 years.
Now, $300,000 of that million dollars is the money you directly invested each year.
But the other $710,730 is money you made from investing in stocks.
Start Investing, Stay Invested.