How to Turn $5,000 Into $25,000Stocks
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What if I told you that there were a way to convert $5,000 into $25,000 using a tried and true investment strategy?
Well, believe it or not, there’s a foolproof way to turn $5,000 into $25,000 and potentially more. What’s the secret?
It’s time. Time? Yes, time. If you start investing early enough, time is all you need to quintuple your money. You don’t need secret investment opportunities or complicated trading algorithms. You just need to be patient.
If you invest $5 today and earn a 6% annual return on it — roughly what the U.S. stock market has averaged historically — you will have $28.71 in 30 years. Now let’s think bigger. If you invest $5,000 today and earn a 6% annual return on it, you will have $28,717 in 30 years. And if you invest $50,000 today and earn a 6% annual return on it, you will have $287,174 in 30 years.
The trick is, though, to start early enough. It doesn’t matter what you have today, be it $5 or $50,000. You just need to get started investing your money as quickly as possible.
Maybe that means you’ll have to sacrifice some things to pay off your student loans a few years early. Maybe that means that you’ll have to forego an extra $5 or $10 of spending a week to save up enough to invest.
Whatever you have to do to get there, you need to start now.
Logan is a practicing CPA, Certified Student Loan Professional, and founder of Money Done Right, which he launched in 2017. After spending nearly a decade in the corporate world helping big businesses save money, he launched his blog with the goal of helping everyday Americans earn, save, and invest more money. Learn more about Logan.