On… the Road to a Million
Last blog , I was sharing about the amount of passive income generating Asset I require to retire comfortably (in 20 years’ time), which is a million dollars. Now the question is, how are we going to get there? Lets explore the options (These options are of course not holistic, as they say there are more than 1 way to skin a cat). Option 1 - SAVE. If we can save 42, 00$ every month. It will be 50,400$ of savings per year and 1,008,000$ in 20 years. That’s easy if we earn a combined income of 42,000$ every month and we just have to save 10 percent of that income. Unfortunately, we don’t earn that kind of money. Option 2 – COMPOUND. Mr Warren Buffett compounds his investment at roughly 30% annually. If we can compound like Buffett, we would just need a modest starting capital of 5,500$ and with a CAGR (Compound Annual Growth Rate) of 30%, we will hit 1,045,273$ in 20 years’ time. That’s sweet, unfortunately we’re not Buffett and will not even come close to his performance of a 30% C...