Sunday, July 10, 2016

Millionaire Teacher

Want be a millionaire teacher? 

It’s not pie in the sky.  It’s math.  I’ll show you.

It’s a time-honored tradition: teachers who’ve been around the block more than a few times will tell a tale—like the grizzled old Robert Shaw in Jaws—a somber tale of the monster maw that mistreats money.

We’ll say: save yourself.  Start saving early, even if it’s just a little.  We’ll talk in a hushed reverence about…Compound Interest.

It’s a little bit magical, but it’s real.   
Look here, if you save just $100 a month, let’s just say, and you start saving at age 25, every month for 40 years.  At age 65, at the average stock market rate of return of 8%, you’ll have a princely sum of $333.7K. 

Time is your best friend.  That’s because over time, the interest you earn on your money will itself earn interest.  

Contrast that with a shorter period of time.  Let's say you start saving at age 45.  $100 a month over just 20 years yields $59K.  Nice, but…more time yields far more money.


Let’s play money crunching.  My favorite website for a compound interest calculator is moneychimp.com  


Can you save $200 a month?  After 40 years you’ll have approximately $671K.
 But after 20 years it’s only $118.6K.
 
Want to be a millionaire?  Save 300 a month for 40 years, and do the math.

True, the stock market fluctuates, worlds collide and finances crash, but if you find a good, reliable investment and keep your money in over the long term, this is what you’re likely to see.

One of best investments is in a Roth IRA, because when you take the money out, it is tax-free.  Also, you may take out any funds you've put into your Roth at any time, which is good to know in case of an emergency.


"Yes," say young teachers, "but I don’t have a penny extra."  I know.  I’ve been there, said that, and it was true.


Still, older teachers who’ve been there will ask you to look closer.  Not at your needs, but at your wants.  I’m not saying to do without, simply to become a do-it-yer-selfer, and to find snazzy substitutes. 

What’s sweeter than a Louis Vuitton bag, a dazzling nail design, a jumbo mocha Frappuccino from the corner store, premium movie tix, and your 5 fav mags?  Two words:

Millionaire Teacher.

 photo Renee sig BLOG mistral 3_zpsdafcpaq6.png

4 comments:

  1. What a fun post! TPT has made this especially doable since many consider it "extra income." Before you get used to having the extra money, put some away like you never had it! Thanks for the great read. :)
    Kelly
    www.createdbykellyann.com

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  2. Thanks for your thoughts, Kelly Ann! You're right, and I like to treat money like love: via heart AND mind :) --Renee

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  3. Soooo true! But not easy ;)--Renee

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