Hi, I'm Andrew Jacobs. Whether you're buying, selling, or renting a home in NJ or PA, you've come to the right place. This business has proudly been in my family for 30 years. Let's reach your goals together. Call or text me personally anytime at (267)-714-2900 or send me an email at
Disclaimer:I am not a financial or investment advisor, and the information on this site is for informational and entertainment purposes only and does not constitute financial advice.
Like most people, my paychecks are spent on bills, food, entertainment, etc. And anything that's left goes into a standard bank savings account.
So how in the world do people become Millionaires? How does anyone have enough savings to go on vacation, buy a new house, or retire??
Luckily, my grandmother taught me a few money lessons growing up. She sparked my interest big time. After reading 20+ finance books, I’ve now learned a lot about money and how to grow it properly. Why weren’t we taught this stuff in school??
Yes, this topic can be really boring….but it’s so important. Americans are overworked and underpaid. We need to take advantage of the money growth opportunities that are available to us.
Before we get to how to turn $100 into $1 Million, there are two concepts you should become familiar with:
This is money earned, not only on your initial deposit, but on the accumulated interest of prior periods.
The above example starts with $1,000. It earns 10% interest, or $100. Now you have $1,100.
You reinvest and do it again. You now start with $1,100. It earns 10% interest, or $110. Now you have $1,210.
This is how the rich get rich. And then get exponentially richer. Over long periods of time, compound interest will grow money at an insane rate.
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” – Albert Einstein
If you were to invest $10,000, and leave it for 30 years, growing at 8% per year, you will end up with over $100,000. That is the power of compound interest.
The general increase in prices (and the fall in the purchasing power of money).
“My triple, venti, half sweet, non-fat, caramel Macchiato was only $4.50 last year, and now it’s $6.00?! That’s ridiculous!”
Of recent, the average rate of inflation has been around 2.5%. Over long periods of time, inflation is absolutely devastating. Something that cost $10,000 in 1900 would cost $290,000 today. Each year, prices go up and our money loses purchasing power.