The Hidden Truth Of Compound Interest

Many traders and investors are looking for the "holy grail" strategy that will yield 100%+ monthly returns and will make them ultra rich overnight (which is totally unrealistic).

However, they miss the most important point: to become ultra rich, you don't need ultra high monthly returns. In fact, with a consistent 10% monthly return you can become ultra rich sooner than you thought.

Below is a calculation based on 10% monthly compound interest on your capital, when you start with as low as $10,000.

• M0: $10,000
• M1: $11,000
• M2: $12,100
• M3: $13,310
• M12: $31,384
• M24: $98,497
• M36: $309,126
• M48: $970,172
• M49: $1,067,189
• M60: $3,044,816
• M72: $9,555,938
• M84: $29,990,627
• M96: $94,123,436
• M108: $295,399,664
• M120: $927,090,688
• M121: $1,019,789,757

As you see, the key here is small but consistent monthly returns.

Most people spend 4 years in college racking up debts for tuition and then spend the rest of their lives repaying the debts while continuing to take new loans and mortgages.

Very few people do the maths which reveals that with 10 years of consistent action you can become a billionaire.

To do your own calculations with different interest rates, I recommend to use this?compound interest calculator.

Originally published on Jun 13, 2021.

Original link: https://www.traderwise.me/blog/the-hidden-truth-of-compound-interest