{"id":30228,"date":"2020-03-13T15:48:47","date_gmt":"2020-03-13T13:48:47","guid":{"rendered":"https:\/\/www.bondora.com\/blog\/?p=30228"},"modified":"2020-03-13T15:48:47","modified_gmt":"2020-03-13T13:48:47","slug":"3-investment-plans-you-could-follow-to-be-a-millionaire","status":"publish","type":"post","link":"https:\/\/goandgrow.eu\/en\/blog\/3-investment-plans-you-could-follow-to-be-a-millionaire\/","title":{"rendered":"3 investment plans you could follow to be a millionaire"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">What do you think it takes to become a millionaire? A huge inheritance? Maybe a thriving global business? It might seem like becoming a millionaire is very far away, but in fact, it really isn\u2019t. With some careful planning and a solid investment strategy, you too could become a millionaire in your lifetime.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Investment-plans.png\" alt=\"Investment plans\" class=\"wp-image-30229\" \/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Growing your wealth into the millions takes patience and persistence. But don\u2019t be fooled, it\u2019s still something that anyone with a regular job and strong budget can accomplish. Let\u2019s look at three different investment plans that are not only attainable, but realistic for most working people. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A saving state of mind<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Before we get into savings plans themselves, we want to highlight that saving is not just something you need to do, it\u2019s a state of mind. Becoming a saver might take a total change in the way you view money and your earnings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unless you are the CEO of a major company or have an extremely high-paying job, the path to becoming a millionaire will require financial discipline. Saving money should become a habit that you embody regularly; it should be second nature in your life. Getting a strong <a href=\"https:\/\/www.goandgrow.eu\/blog\/lack-of-financial-education-is-a-global-issue-heres-how-to-fix-it\/\">financial education<\/a> is key to understanding why saving is so important. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But it\u2019s not that you are just saving for its own sake, you are saving in order to invest. When you invest your savings over time, you can grow your wealth in ways that you may never before have imagined. The sooner you begin to save and invest that savings, the easier it will be to become a millionaire and lead a financially independent life. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Example plans<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Don\u2019t believe you could ever become a millionaire? Think again. People with regular jobs and incomes can\u2019t imagine growing their wealth into the millions, but with proper savings and a strategic investment plan, even families who are not particularly wealthy can achieve this milestone. One of the biggest ways to accomplish this is to take advantage of compound interest, where financial gains are reinvested over time and generate what is known as the \u201csnowball effect\u201d on returns. You can check out more about compound interest <a href=\"https:\/\/www.goandgrow.eu\/blog\/the-miracle-that-is-compound-interest\/\">here<\/a> to learn about how this phenomenon can positively impact your finances.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In our examples, we will illustrate how compound interest and regular savings can lead to financial growth. To better understand these examples, let\u2019s define the inputs to illustrate each investment strategy:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Starting amount &#8211; The beginning\namount you have to invest<\/li><li>Investment per month &#8211; The amount\nyou can afford to save and invest each month<\/li><li>Returns &#8211; The rate of return you\nexpect from your investment<\/li><li>Returns compounded &#8211; How often the\nreturns are calculated on your investment<\/li><li>Investment increase &#8211; The amount\nyou plan to increase your investment each year<\/li><li>Years &#8211; The total number of years\non your investment plan<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These are the factors that help determine how much an investment will grow over time. Each of these inputs on their own is important, but together they paint a picture of how your savings and investments will play out in the coming years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now that we\u2019ve defined our savings and investment factors, let\u2019s see how you can get to become a millionaire with an investment plan of your own!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Just starting out<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This plan is for those who are just starting out on their investment journey. In this plan, we assume that you are starting out with no money to invest, but with a plan to start saving \u20ac200 per month to allocate toward your savings, and growing this investment 10% per year. This scenario applies to anyone who is in the beginning stages of their career and can expect a natural progression in their careers, allowing them to invest more money over time.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the following examples, we have used a rate of 6.75%* p.a. The returns are compounded daily.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Compound-example.jpg\" alt=\"Compound return example\" class=\"wp-image-30235\" \/><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Investment-example-plans.png\" alt=\"Investment example plans\" class=\"wp-image-30382\" \/><figcaption> <em>Source: <a href=\"https:\/\/www.thecalculatorsite.com\/finance\/calculators\/compoundinterestcalculator.php\" target=\"_blank\" rel=\"noopener\">https:\/\/www.thecalculatorsite.com\/finance\/calculators\/compoundinterestcalculator.php<\/a><\/em> <\/figcaption><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Following this plan, you can calculate your current age and add 32 years to determine when you will become a millionaire. Sound crazy? It\u2019s actually not. As you can see, this is a realistic plan for someone in their 20s or early 30s to accomplish before they reach the age of retirement. Think about it. If you are 25 years old today and stick to this investment plan, you will become a millionaire by the time you are 57 years old!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Higher salaries<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In this next example, we assume that you are someone who doesn\u2019t have any money to invest today, but has established yourself in a well-paying job, and therefore can afford to save and invest more money each month. For our purposes, we assume that you can already afford to save \u20ac1,000 per month, and increase these savings by 0.5% per year. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Higher-salary-example.jpg\" alt=\"Higher salary example\" class=\"wp-image-30247\" \/><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Higher-salaries-example.png\" alt=\"Higher salaries example\" class=\"wp-image-30388\" \/><figcaption><em>Source: <a href=\"https:\/\/www.thecalculatorsite.com\/finance\/calculators\/compoundinterestcalculator.php\" target=\"_blank\" rel=\"noopener\">https:\/\/www.thecalculatorsite.com\/finance\/calculators\/compoundinterestcalculator.php<\/a><\/em> <\/figcaption><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">In this scenario, it would only take 28 years of saving to get to \u20ac1 million. Because you can afford to save more money off the bat, you are able to reach the millionaire mark quicker than in the previous scenario. Even more, this is all done by starting out with no savings at all, meaning, you can start saving right away.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Already money to invest<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In our last example, we assume you are someone who already has some money to invest and is able to save money regularly to continue growing your investment. Let\u2019s say you already have \u20ac1,000 saved with which you can invest from the get-go, and can afford another \u20ac500 per month to invest, growing this amount 5% each year.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Already-money-to-invest.jpg\" alt=\"Already money to invest\" class=\"wp-image-30259\" \/><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Already-money-to-invest-example.jpg\" alt=\"Already money to invest example\" class=\"wp-image-30265\" \/><\/figure><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Already-money-to-invest-example.png\" alt=\"Already money to invest example\" class=\"wp-image-30394\" \/><figcaption><em>Source: <a href=\"https:\/\/www.thecalculatorsite.com\/finance\/calculators\/compoundinterestcalculator.php\" target=\"_blank\" rel=\"noopener\">https:\/\/www.thecalculatorsite.com\/finance\/calculators\/compoundinterestcalculator.php<\/a><\/em> <\/figcaption><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">This scenario shows us that even if you can\u2019t invest a significant amount of money each month, if you start out with a solid investment and make regular contributions, you can still become a millionaire in 30 years. But, even if you don\u2019t get to the millionaire target, it\u2019s still a good idea to have a well-defined goal. This will provide you a benchmark to work toward and help build your financial freedom.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Try it out yourself<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The previous investing examples should give you a good idea of how to successfully invest to become a millionaire. However, everyone is different, so you should make sure to determine your investing strategy based on your own personal financial situation. Now it\u2019s time for you to <a href=\"https:\/\/www.goandgrow.eu\/blog\/how-to-create-your-very-own-investment-plan\/\">create an investment plan of your own<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can do this by creating your own simulations using Go &amp; Grow\u2019s simple calculator. To do so, navigate to your Go &amp; Grow account, click the icon on the upper right corner, and select Forecast. Here you will be able to input your current starting amount, monthly investment, and how many years you are looking to invest.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/www.goandgrow.eu\/blog\/wp-content\/uploads\/Go-and-Grow-forecast-1-1024x630.png\" alt=\"Go and Grow forecast\" class=\"wp-image-30277\" \/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">This will show you how <a href=\"https:\/\/www.goandgrow.eu\/en\/goandgrow\">Go &amp; Grow will build your savings<\/a>, and how your net worth will be positively impacted through this process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Use the Go &amp; Grow forecast tool with various different inputs to see the different investment plans you can use to grow your wealth. <\/p>\n\n\n\n<p class=\"has-very-light-gray-background-color has-background wp-block-paragraph\"><em>*As with any investment, your capital is at risk and the investments are not guaranteed. The yield is up to 6.75% p.a. Before deciding to invest, please review our <a href=\"https:\/\/www.goandgrow.eu\/en\/riskstatement\">risk statement<\/a> or consult with a financial advisor if necessary.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What do you think it takes to become a millionaire? A huge inheritance? Maybe a thriving global business? It might seem like becoming a millionaire is very far away, but in fact, it really isn\u2019t. With some careful planning and a solid investment strategy, you too could become a millionaire in your lifetime. Growing your [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[119],"tags":[],"class_list":["post-30228","post","type-post","status-publish","format-standard","hentry","category-financial-well-being"],"acf":[],"featured_image":null,"categories_names":["Financial Well-being"],"category_name":"Financial Well-being","_links":{"self":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/posts\/30228","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/comments?post=30228"}],"version-history":[{"count":0,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/posts\/30228\/revisions"}],"wp:attachment":[{"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/media?parent=30228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/categories?post=30228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goandgrow.eu\/en\/wp-json\/wp\/v2\/tags?post=30228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}