What I'm about to show you is the easiest most probable way for you to become a millionaire and it's the same method that the filthy, rich are using to bring in the big bucks, so pay close attention. I got these sprinkles off of Amazon for like $ 20. I want you to imagine that each of these sprinkles is equivalent to a hundred bucks, so we got Jim, we got Jane and we got John Jim is what people like to call a goody two-shoes. He starts investing his money at the age of 19 $ 300. A month. Jane is like most other people. When she was in her early 20s. She spent her time and money freely. She would go out eat with her friends have some drinks. She didn't get serious about life and start investing until she was 27 same amount as Jim $ 300 a month, and then we got John John is a carefree dude. The idea of investing never occurs to him. He always thought Oh Social Security and my pension. That'S going to cover my living expenses in the future. Now, when Jim starts investing, he invests $ 300 a month. This totals up to three thousand six hundred dollars a year.
Thirty, six sprinkles: Let'S imagine that the rate of return on his investment is 10 %, which means that every year you take the total amount of money. Jim has invested - and you add ten percent to that. So for his first year that's an extra three hundred and sixty dollars. Where can we find a rate of return? That'S 10 % I'll get to that later, but for now watch carefully at what happens to Jim's money so the second year Jim's 20 and he invests another $ 3,600. This year, his 10 % return on investment is 756 dollars, which leaves him with a total of eight thousand three hundred and sixteen dollars for his third year. He invests the same amount, but this time he's left with thirteen thousand one hundred and eight dollars, and he continues to do this until he's 26
He stops investing money but watch as his money grows throughout the years by only factoring in his 10 % rate of return, he's not adding in more money, he's simply leaving it in there and watching it grow by the time he is 65, although he hasn't actually Invested more than 28-thousand and $ 800, which is about the average price of a brand-new car nowadays he's already accumulated a whopping 1 million eight hundred sixty-three thousand two hundred and eighty-seven dollars. That'S a lot of money! Now, let's take a look at our friend, Jane Jane. Doesn'T start investing until she's 27 same thing as gym three hundred dollars a month except Jane, never stops investing. She continues to put in $ 300 a month until she's 65. So, let's take a look at her results.
She ends up investing a hundred and eight thousand dollars more than gym. Yet she makes only one million five hundred eighty nine thousand seven hundred and thirty three dollars, which is about a quarter of a million less than gym all because she started investing eight years later than he did. This is still a very large sum of money and finally, let's take a look at our pal John, so John never gets around to investing his money. Instead, he decided to just keep it in the bank. Here'S how much twenty eight thousand eight hundred dollars looks like it's nothing, compared to what Jim and Jane made when Warren Buffett, who was considered to be one of the best investors on this planet was asked how he became so rich