How to Accumulate a Million

The dream of every man is to put together capital and live on interest, doing what he wants. Passive income - it's just wonderful. You do not do anything, but the money is dripping. In fact - this is an endless romanticism. A dream, a firebird, followed by a cloud of people, sweeping away everything in its path, including their own family, friends and health.

But why bother the crowd? Want, so want. Let's see if this is possible. The idea is this: to understand how to save a million, put in a bank and receive interest. Okay, let's see what we have in common.

Before newcomers to investing there are several problems. First, absolute ignorance of financial laws. Secondly, the dense darkness with respect to financial instruments. Thirdly, laziness, which undermines the will to study the first and second. Against this background, a small salary is perceived by a newcomer as an excuse for not wanting to overcome all these problems.

Therefore, the first thing to do is to rush the newcomer into the head with a goal for which he will be ready to learn all these things. Quite possibly this is the goal of how to save a million.

So, if it is possible to achieve this goal with a scant reserve of knowledge? Of the financial instruments available to the common man in the street can only be bank deposits. Of the financial laws - a complex bank interest. It is necessary to count how many years it will take to accumulate the desired million.

We will count as follows: take the bank interest from the current statistics. Let it be 12% We will "postpone" to the bank every month part of the salary. Let it be 15,000 rubles. How long does it take to accumulate a million?

You can make a visual calculation on the website "25 Signals" on the link in the body of this article just above. There, in a visual form, you can see all your deposit replenishment, the amount of interest received. In this example, you reach the goal in 4 years and 4 months.

And if you look at the receipt of funds, then by the end of the accumulation period, the amount received from the interest is suspiciously approaching the amount you deduct from the salary. If you quit the idea of just saving up a million and continuing to save further, the amount of interest will begin to grow at the speed of the rocket. This is the manifestation of the so-called compound interest effect. Over time, interest on interest will grow at such a rate that you will receive fabulous profits without investing anything at all. But this is a completely different story.