If you think this isn’t possible, maybe you don’t understand compound interest
Friends often laugh at me when I tell them I have a side hustle that’s making $500 a month.
Why? Because many of them already make $5,000 to $10,000 a month. They just don’t see the point of earning an extra $500.
They claim $500 is nothing.
You might even agree with them.
But what if I told them that my side hustle had made me a cool $1 million?
Then they’d sit up and take notice. They’d want to know what I did to earn it. They’d want to know how they could do the same.
They want $1 million, not $500.
I completely understand that. I also want $1 million and not $500.
So why am I happy to earn $500 a month if I want $1,000,000?
Well, that’s easy to answer.
I’m happy to earn $500 a month because I understand compound interest.
Do you understand it? Let me give you a little test. If I offered you the following two options, which would you take.
Option 1 — I can give you $1,000,000 today.
Option 2 — I can give you $0.01 today, $0.02 tomorrow, $0.04 the day after, and keep doubling the amount for 30 days.
If you’re like the majority of people you’ll take option 1. You’ll also likely think anyone would be stupid to take option 2.
If you’d taken option 2, you have $5,368,709.12 by day 30.
This is tough to see intuitively because our minds just aren’t good at thinking about such things.
Similarly, if you make $500 a month and invest it at a return of 10% over the next 30 years, you’ll have a total of $1,039,646.36.
So you can indeed make $1 million by earning $500 a month.
I’ll let my friends keep laughing at me.
I have patience.
He who laughs last laughs longest.