On... Million Dollar per Year
Told my wife that we will have a million dollars in 10 - 15 years time. Her reaction was pretty muted. Whether it was disbelief or she was unimpressed, I'm sure she ( and others ) would be even more in disbelief if I told her I can earn a million per year. It doesn't matter how long you take to accumulate your first million. For our discussion, let's assume you have a CAGR of 10%. As soon as you accumulate your first million, it will take just another 7 years to get your next million. The table below shows the progression of your net worth over time. Using the rule of 72, you double your net worth roughly every 7 years ( with 10% CAGR ). The chart above shows the increase of your net worth over time. You double your net worth every 7 years or to put it another way, one cycle of net worth doubling is 7 years. And the next cycle, you double your net worth again. Meaning, in 2 cycles ( or 14 years ), your net worth has increased from 1 million to 4 million. This also means i...