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  • Compound Investing: Minority Mindset

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    Ramon Arevalo
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    The document discusses the power of compound interest and reinvesting money over long periods of time. It explains that money can be saved, spent, or reinvested. Reinvesting earnings and practicing delayed gratification can dramatically increase returns through compound interest over decades. Specific examples show how investing small regular amounts from age 21 to 65 at average stock market returns of 7% can result in over $1 million, even more at higher returns.

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    Investing 3

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    Investing 3

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    The document discusses the power of compound interest and reinvesting money over long periods of time. It explains that money can be saved, spent, or reinvested. Reinvesting earnings and practicing delayed gratification can dramatically increase returns through compound interest over decades. Specific examples show how investing small regular amounts from age 21 to 65 at average stock market returns of 7% can result in over $1 million, even more at higher returns.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    23 views15 pages

    Compound Investing: Minority Mindset

    Uploaded by

    Ramon Arevalo
    The document discusses the power of compound interest and reinvesting money over long periods of time. It explains that money can be saved, spent, or reinvested. Reinvesting earnings and practicing delayed gratification can dramatically increase returns through compound interest over decades. Specific examples show how investing small regular amounts from age 21 to 65 at average stock market returns of 7% can result in over $1 million, even more at higher returns.

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    © All Rights Reserved
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    of 15

    Compound Investing

    Minority Mindset

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset
    Savings &
    Emergency

    Earn More
    Investment
    Money Money

    Spending

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset
    Savings &
    Emergency

    Earn More
    Investment
    Money Money

    Spending

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset
    3 Options

    1. Save it

    2. Spend it

    3. Reinvest it

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset
    You have to do what’s best for
    you AND your goals.

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset
    Power of
    Compound Interest

    • Time

    • Delayed Gratification

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset
    Power of
    Compound Interest
    • Start at 21 years old until you’re 65

    • Invest $300/month

    • 7% annual return ($1 —> $1.07 after one year)

    Average historical stock market return

    • Reinvest all the profits until you turn 65

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset
    Power of
    Compound Interest
    • “Saved” $158,400 ($300/month * 44 years)

    • BUT you invested the money

    • $1,025,097

    Time & delayed gratification

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset
    Power of
    Compound Interest

    • Play around with it [calculator below]

    • 10% interest rate: $2,584,457

    • 12% interest rate: $4,886,028

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset
    8th wonder of the world
    -Albert Einstein

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset
    How do you do this?
    • Stocks: you can automatically reinvest the
    dividends

    • When dividends are issues, you can have them


    automatically buy you more stock

    • Ally Invest [below]

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset
    How do you do this?
    • Real estate: let your rent accumulate then invest it
    in

    • Improvements that get you higher rent (a garage,


    remodeling the kitchen, AC, etc.)

    • Your next investment property (equity, debt,


    creative financing)

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset
    Investing is to build long-term
    wealth.

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset
    If you want more money today
    you need to EARN more
    money [more on this later]

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset
    Find your balance

    www.TheMinorityMindset.com
    www.YouTube.com/MinorityMindset

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