What happen when you invest 1$ a day in stock for 10 years
What happen when you invest 1$ a day in stock for 10 years
In this article you will know what is the real concept that will grow your 1$, what is the role of compounding,
average returns after 1 year, real calculation for 10 years and you will also learn if you invest 5$ a day then how much and how you can earn money from stocks after 10 years.
Real Investment Strategy:
If you invest 1$ a day, after one month it will become 30$, after 1 year it will become 365$ in a single year and after 10 year your savings become 3650$, but saving that money into your accounts never make sense.
Your money will increase in case of if you will invest that money in stocks and mutual funds.
Stocks will grow your money through returns and compounding.
What is Compounding and how it will Help you?
When you invest 1$ in stocks and hold it for 1 year, it will returns to you 1.10$ if returns go 10%,
Next year that 1.10$ earns more 10% profit if you hold that stocks for long time, your profits starts earning more profit and cycle repeating again and again this is called compounding.
Average Stock Market Returns:
After seeing history of Stock Market we will come to know that every year after inflation stocks returns
8 --- 10% , if we assume 8% annual returns then we have the simple calculation that how much
we will get after 10 years.
Calculation for 10 Years:
1$ per day for month = 30$
1$ per day for 10 years = 3650$
According to 8% returns after inflation we will get approximately 5500 --- 5800$
The reason is why so much profit in only 10 years
because our each 1$ that we invested In stocks or Mutual Funds also giving us 8% returns every year after inflation.
Don’t withdraw money it stops compounding and your investing start from day 1 again.
Be Consistent Compounding takes 10+ years
What If you Invest 5$ a Day for 10 Years?
Imagine if you invest 5$ per day in stocks or mutual funds, guess how much you will earn after 10 years.
5$ per day till 10 years = 18250$
After 10 years you will get approximately = 27000 --- 30,000$
But if you do this habit for 20 to 30 years, you can easily earn hundreds of thousands of dollars.
Final Summary:
Invest 1$ per day for 10 years you will earn 5500 to 5800$ by doing this habit
Be patience and consistent.
So this is the final summary of if you invest 1$ a day for 10 years.
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