The crossover point: How to know when you’ve achieved financial independence

The crossover point: How to know when you’ve achieved financial independence

Today I want to introduce you to the Crossover Point, that magical place where you have enough saved that you can live off your investment returns. To start, let's talk about one of my money heroes, billionaire Warren Buffett.

Buffett wasn't always a billionaire. He started from scratch, just like you and me. Here he is in 1948 — when he had less than $10,000 to his name:

[Warren Buffett 1948]

What a dork!

Buffett began making money when he was six years old. He'd buy packs of chewing gum for three cents each, then go door to door selling them for a nickel. (He refused to sell individual sticks; you had to buy an entire pack of Doublemint or nothing.)

“He could hold those pennies, weighty and solid, in his palm,” writes Alice Schroeder in her excellent Buffett biography. “They became the first few snowflakes in a snowball of money to come.”

From chewing gum, Buffett graduated to soda pop. He sold bottles of Coca-Cola to his neighbors in Omaha, and he even peddled his wares to sunbathers while vacationing at Lake Okoboji in Iowa. Buffett sold used golf balls. He hawked peanuts and popcorn at University of Omaha football games.

All the while, he kept score. He deposited his pennies and nickels in the bank and kept track of his savings in a passbook.

At a young age, Buffett began to grasp the extraordinary power of compounding. Again from Schroeder's book: “The way that numbers exploded as they grew at a constant rate over time was how a small sum could turn into a fortune. He could picture the numbers compounding as vividly as the way a snowball grew when he rolled it across the lawn.

When he was ten years old, Buffett vowed to become a millionaire by age thirty-five. By the time he turned eleven, he'd accumulated $120. He used his cash to buy his first three shares of stock. He had 24 years and $999,880 to go to meet his goal.

Buffett's Snowball of Money

When Buffett left Omaha for college at age 20, he'd saved $9804, some of which was in stocks. He moved to New York to attend Columbia University, where he took finance classes from Benjamin Graham and David Dodd. He continued to invest, both for himself and now for family and friends. He wrote articles about the stock market. (Even back in 1952, he was obsessed with GEICO stock.) He bought his first business, a service station.

Buffett got married and had kids. He earned more money, both from work and investing. All the same, he was reluctant to spend. He was frugal — almost miserly. He didn't like to buy new clothes. He made a deal with a nearby newsstand to purchase outdated magazines at a discount. For a long time, he didn't own a car. (After he did purchase a vehicle, he'd only wash it when it rained.)

Like a money boss, Buffett kept his costs down while boosting his income.

“For Warren, holding on to every penny this way, since he had sold that first pack of chewing gum, was one of the two things that had made him comparatively rich at age twenty-five,” writes Schroeder in The Snowball. The other contributing factor? Buffett was making money at an ever-increasing rate.

The years and decades passed. Buffett continued to invest. His snowball grew exponentially.

  • By age 11, Buffett had saved $120.
  • By age 21, Buffett had a net worth of $19,738.
  • By age 26, Buffett was worth $140,000.
  • By age 30 — five years ahead of schedule — Buffett was a millionaire.
  • By age 40, Buffett had more than $25,000,000.
  • By age 50, Buffett had accumulated over $150,000,000.
  • By age 60, Buffett had become a billionaire.

Today, Warren Buffett is worth $84.1 billion. He's the third-richest man in the world. During his 85 years, he's created the greatest wealth snowball the world has ever seen.

And it all started with chewing gum.

Snowball by Kamyar Adi

I can't promise that you and I will become billionaires. In fact, our chances of doing so are exceedingly slim. But I can promise that if you follow the advice I share at Get Rich Slowly, you will produce a modest wealth snowball of your own. And if all goes well, you'll eventually reach that Crossover Point where you can live off your investments for the rest of your life.

Your Wealth Snowball

You begin rolling your wealth snowball the moment you achieve a positive cash flow — as soon as you're earning more than you spend. Each penny of profit adds to your fortune.

  • When you stay late to work overtime, you add do your wealth snowball.
  • When you choose to bike instead of drive, you add to your wealth snowball.
  • When you decide to downsize your home or work a second job or skip the new iPhone, you add to your wealth snowball.

The bigger your profit margin, the faster the snowball grows.

It's not just earning and spending that affect your wealth. Your investment returns play an important role too. In the short term, your contributions have a greater impact than investment performance, but over the long term the extraordinary power of compounding comes into play.

Assume you make a one-time $5000 contribution to your retirement account at age twenty and manage to earn an 8% return every year. If you never touch the money, your $5000 will grow to $159,602.25 by the time you’re sixty-five years old. But if you wait until you’re forty to make that one-time investment, your $5000 would only grow to $34,242.38 before you retire. Compounding is the reason it's so important to begin investing when you're young!

When you add to your wealth snowball regularly, its growth accelerates.

If you were to invest $5000 each year for forty-five years, for instance, and if you left the money to earn an 8% annual return, your savings would total over $1.93 million. You’d have more than eight times the amount you contributed. This is the power of compounding.

Because you're a money boss, you don't want to wait forty-five years to achieve Financial Independence. You want to reach your Crossover Point in ten or fifteen years, not fifty. With a short investment horizon, there's less time for compounding to do its work. That's why it's so important to save half of your income — or more.

Here's what Mr. Money Mustache calls the shockingly simple math behind early retirement:

  • With a 10% profit margin (or saving rate), you'd need to work for 50 years to reach Financial Independence. Your wealth snowball grows — but not quickly.
  • With a 20% profit margin, you'd need to work for 37 years to achieve Financial Independence.
  • With a 35% profit margin, you'd need to work for 25 years to achieve Financial Independence.
  • With a 50% profit margin, you'd only need to work for 17 years to achieve Financial Independence.
  • And if you can manage to save 70% of your income, you could achieve Financial Independence in 8-1/2 years!

Pull out your personal mission statement. Look at your goals. Your profit margin directly affects how quickly you’ll achieve these aims. The sooner you grow your wealth snowball, the sooner you can do the things you dream of doing.

The Crossover Point

At some point in the future, your wealth snowball will be so large that it'll last the rest of your life. You’ll never have to work for money again unless you choose to. It’s at this point that you’ll have reached Financial Independence.

At this crossover point — a term coined by Joe Dominguez and Vicki Robin in Your Money or Your Life — your investment returns provide more money than you spend.

The Crossover Point

Realistically speaking, it's important to have a margin of safety. (In fact, this is one of Warren Buffett's core beliefs!) To that end, I make the following assumptions when I calculate whether somebody has reached the Crossover Point:

  • You'll spend as much in the future as you do now. (About one third of people spend more, one third spend less, and one third spend the same.)
  • If you withdraw about 4% from your savings each year, your wealth snowball will maintain its value against inflation. During market downturns, you might need to withdraw as little as 3%. During flush times, you might allow yourself 5%. But around 4% is generally safe.

Based on these assumptions, there's a quick way to check whether or not the Crossover Point is within your reach.

Multiply your current annual expenses by 25. If the result is less than your savings, you've achieved Financial Independence. If the product is greater than your savings, you still have work to do. (If you're conservative and/or have low risk tolerance, multiply your annual expenses by 30. If you’re aggressive and/or willing to take on greater risk, multiply by 20.)

If you'd prefer, you can approach the problem in reverse. Start with your current wealth snowball and see how long it'll last.

To keep things simple, we'll work with net worth (the difference between what you own and what you owe). If you've already calculated your net worth, use that number. Otherwise, you can download or copy this net worth spreadsheet I created in Google Docs. (It's still branded for Money Boss, but it's now officially the Get Rich Slowly net worth spreadsheet!)

Once you have your net worth, multiply it by 4% (or by 0.04). Based on recent history, this is how much you could safely spend each year without draining your savings. (If you want to be conservative, multiply by 3%. If you're feeling bold, multiply by 5%.)

How do these numbers make you feel? Is your wealth snowball bigger than you thought? Or is there work to be done before you'll feel secure? How long until you reach your Crossover Point? Or are you already there?

Photo credit: Snowball by Kamyar Adi. Not sure who took the young Buffett photo.

Note: I'm migrating old Money Boss material to Get Rich Slowly — including the articles that describe the “Money Boss method”. This is the tenth of those articles.

Look for the final installment in the “Money Boss method” series later this week.

More about...Money Mindset, Psychology

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The Poor Swiss
The Poor Swiss
2 years ago

Stories about Warren Buffet are always very inspiring. He’s a really great man. Should we stop calling it the snowball effect but chewing gum ball effect ? It also sticks and gets bigger 😛

SoberFinance
SoberFinance
2 years ago

The snowball is perhaps the perfect metaphor for the accumulation of wealth, especially the point when it no longer needs contributions, but has enough momentum to grow on its own. I think for many people the goal of financial independence and reaching the cross-over point provides that purpose to grind it out for [X] years. Once that point is achieved, I’m curious as to what individuals who achieve FI do without that purpose — where is it re-directed? I can imagine what the typical responses will be from those who are working on FI, but would like to hear from… Read more »

Ross Williams
Ross Williams
2 years ago

“If you withdraw about 4% from your savings each year, your wealth snowball will maintain its value against inflation. During market downturns, you might need to withdraw as little as 3%. During flush times, you might allow yourself 5%. But around 4% is generally safe.” Based on what? There is a 4% rule for what you can expect to withdraw safely from your retirement, adjust that amount for inflation and have your savings last 30 years. Aside from how reliable that rule is, it is very different than the claim here that you can withdraw 4% each year without dipping… Read more »

Tina
Tina
2 years ago
Reply to  J.D. Roth

This still feels incomplete. What about taxes? Taking your net worth and multiplying by 4% to see if it meets your current expenses is inaccurate, unless you’re including taxes in your current expenses (which most people won’t).

Mike
Mike
1 year ago
Reply to  Ross Williams

RMDs kick in at Age 70 1/2. They will deplete whatever 401k and IRA sums you have quite significantly by the time you reach Age 80 and then those RMDs accelerate even more rapidly.

Lily
Lily
2 years ago

I’m pretty big about passive income lately. Compounding slows during down markets and you need something else flashy like passive income to keep you going and growing. It’s a mental thing I think. Because you can control the market or the time, you have to grab something to hone.

Joe
Joe
2 years ago

Warren Buffet is an exceptional individual. His ability to snowball wealth is absolutely amazing. I’m pretty sure I won’t be able to replicate it, but then again, I don’t need to. We reached the Crossover point last year and it was great. Our passive income was more than our annual expense for the first time. Everything went exactly right. Unfortunately, we probably won’t make it this year. We have some big lumpy expense and passive income can’t grow that fast. It will probably take 4-5 years to consistently stay above the crossover point. That’s perfectly fine, though. 4% is a… Read more »

quiting teaching
quiting teaching
2 years ago

I think another important milestone is when your equity pot is double your total contributions, that is your growth is 100%. This is when the snowball starts to steam down the hill.

Jason
Jason
2 years ago

I think one of the challenges with early retirement is that most of us have the majority of our retirement savings tied up in tax-advantaged accounts that often have penalties for early withdrawal. Thus, I can’t start drawing 4% on most of my money until 59 1/2. I’d love to hear some advice on this. You could always use taxable accounts but then you lose the tax-advantaged growth option.

dh
dh
2 years ago
Reply to  Jason

You use both types of accounts. JD’s advice has always been to take advantage of employer- and government-sponsored retirement plans first, then route profit (savings) to regular investment accounts. If you’re saving at least half your income or more, as he recommends, then that’s a lot of extra money going into taxable accounts that you can start drawing from without having to touch your tax-advantaged accounts. Capiche? 😉

rick
rick
2 years ago
Reply to  Jason

Yes there are lots of people with most of their money in a tax deferred account. If you can only save 18k per year, then if you max out your 401k contribution limits you have nothing left over to save for the other taxable accounts. What you have to do is look into the 72T rule that allows you to tap into your tax deferred accounts prior to 59 and 1/2 and you also need to either up you savings level, though that can be tough, or decrease the amount you put into the 401k and put that money into… Read more »

Mrs. Kiwi
Mrs. Kiwi
2 years ago

Great summary of the crossover point! It’s a much smaller number for our frugal family than I ever would have thought, so I’m glad MMM made the fancy tables and a good friend directed me to them early in my career. It’s funny though, because as that crossover point gets closer, I’ve spent so much time planning for the life I’ll live after FI. It seems inevitable that I’ll keep making money in some way. (Of course I would also love to get to be an Angel advisor like you!)

Roabh
Roabh
2 years ago

Great article as usual JDR. My question is how to do you figure out: 1) whether you are at the cross over when you have a lot of your investments in 401(k)s and other retirement vehicles vs. in after tax accounts and 2) since you can’t tapped these early (I’m in my 40s) there needs to be a strategy for withdrawal which I know others like JLCollins have covered, in some degree. What I would love to see is how this all works with some money in both pots. Thank you!

S.G.
S.G.
2 years ago
Reply to  Roabh

I dont have the link, but maybe jd can pull it up, addressing this in ways that include structured early withdrawls and other options. It isn’t all or nothing.

S.G.
S.G.
2 years ago
Reply to  S.G.

Ugh, believe it or not English IS my first language.

It’s a link from JD i followed once a few months ago, maybe even from money boss.

Accidental FIRE
Accidental FIRE
2 years ago

“When you stay late to work overtime, you add to your wealth snowball.”

I did a TON of that in my working career, especially early on. It did indeed work!

Jon Sharpe
Jon Sharpe
2 years ago

This is a nice article on the crossover point and great back-story on Buffet. I think that people tend to either focus on growing their income or cutting their costs, but many do not realize that by doing both, you hit that crossover point so much sooner. We hit ours last year and it is a great feeling!

S.G.
S.G.
2 years ago

I think my biggest problem with the 4% rule is that, while admittedly a worst case scenario, it is based on ending at zero. I expect most people are like me and would not be able to follow that theoretical scenario.

So while I understand that planning on living off interest and never touching capital is overly conservative, the origin of the 4% rule has never quite sat well with me.

George
George
2 years ago

Using 4% to cover spending makes sense, but what about other sources of income like Social Security or pensions for the lucky few? If one of those sources can cover some portion of your annual expenses, then your withdrawal rate could be < 4% right? So your crossover point would also be correspondingly reduced.

Mitch
Mitch
2 years ago

Getting started early with investing is key to making compound interest! If you start grinding early the more you can invest and the more compound interest you will get and the bigger your wealth snowball grows!

PFgeek
PFgeek
2 years ago

Oh boy, do I have a long road ahead of me. I have just recently started out on this journey to FI, and man, am I excited! Thanks for the continuously inspiring posts, J.D, these give me a lot of motivation when things seem difficult 🙂

WantNotToWantNot
WantNotToWantNot
2 years ago
Reply to  PFgeek

PFGeek and others just starting out…. It DOES feel like a long road ahead when you see the kind of numbers that you need to get to the crossover point. But every dollar not spent and every dollar invested really does add up more quickly than you can imagine, thanks to the wonder of compounding interest. Do everything you can to constantly measure and reinforce your positive march toward wealth accumulation—-make graphs, recognize your benchmarks with little rewards, read books and blogs that keep you focused on the goal. One of my favorite tools is the compound interest calculator put… Read more »

dh
dh
2 years ago

I love it that JD mentions our chances of becoming a billionaire are exceedingly slim. This may sound like a toss-off statement, but it is actually super important to consider. In fact, your chances of becoming anything but *average* are exceedingly slim. I love this from Marshall Brain: “It turns out that there are many, many things in life that look incredibly easy like, but in fact tend to be quite difficult. Here are some examples: I’ll get something on the front page of Reddit! I’ll move to LA and become a famous actor/actress! I’ll practice hard and become a… Read more »

S.G.
S.G.
2 years ago
Reply to  dh

Pareto distribution.

George
George
2 years ago
Reply to  dh

True, but don’t get discouraged and give up trying to be even somewhat above average. Lots of room on the right-hand half of a Bell curve.

Kathryn
Kathryn
2 years ago

I’m kind of new at all this, so please forgive my question. If you withdraw 4% each year, how much is left at the end of 30 years? Is it all gone?

S.G.
S.G.
2 years ago
Reply to  Kathryn

In the original study in the worst case scenario it was all gone after 30 years (I believe). But in practice, other than that small percentage of cases, there is some left, and JD and MMM argue that in most cases it will continue to virtually infinity.

So the answer is: sometimes you’re left with 0, sometimes you’re a millionaire, and you won’t know until the end which one you are. But most likely you’ll be somewhere in the middle.

rick
rick
2 years ago

Great article,my one concern is how you justify putting your primary residence and furniture into your pile of spendable money? Lets say you have a house worth 500k and a savings account worth 500k. Now your 4% rule says you can spend 40k per year and be safe for life. That just does not work out. Have you ever tried to get your house to give you 20k per year? I have, it doesn’t. Even my rental house does not give me that kind of money.

WantNotToWantNot
WantNotToWantNot
2 years ago
Reply to  rick

I keep a running calculation with these figures:
1. Investment total (3-4 percent of this = passive income)
2. Cash
3. Value of House
4. Total

I consider #1 my real net worth since it is the money that is making money. Cash flow fluctuates, and I don’t consider the value of my house as a real investment (we are in a low-cost housing area).

While I once made a pile on a real estate sale, I consider that a unicorn.

So, just think about your investments as the pile from which to count the 3-4 percent, if you want to plan super conservatively.

WantNotToWantNot
WantNotToWantNot
2 years ago
Reply to  J.D. Roth

Ha, J.D. ….I’m laughing at “NW-HV.”

Yah, we do need a more nuanced term for “net worth.”

S-C = Stash-minus-Cave (versus S+C)?

On the other hand, fussing over how to count “net worth” is a little like the quarrel over what “retirement” really means. Everyone will define it somewhat differently, and it’s all semantics really.

In truth, the only numbers that really matter are:
What are you earning?
What are you spending?
What are you saving and investing?
What kind of return are you getting on those investments?

S.G.
S.G.
2 years ago
Reply to  J.D. Roth

“Net portfolio” might work. I think the argument is really that a primary residence isn’t part of an investment portfolio.

Or how about “gross worth”? It sounds funny, but it would be easier to grasp since it would parallel net vs gross income.

WantNotToWantNot
WantNotToWantNot
2 years ago
Reply to  S.G.

Oh, that works….
Net worth versus Gross worth.
Like it.

The other argument for not including (or thinking of) the house as part of the net worth is that it costs money—usually a little more than it appreciates unless you are in an unusual situation or HCL situation. It’s easy to discount all the expenses that go into a house; I love ours so I don’t regret a dollar of it, but I would never call our current home an investment. My SO calls it our sailboat.

S.G.
S.G.
2 years ago
Reply to  S.G.

Ha!

Now who’s the word police, JD?

Wesley
Wesley
2 years ago

Thanks for the spreadsheet. I copied it and filled it out…it was depressing. I thought I was MUCH further along than I am. I’m debt free (no mortgage, no car debt) and thought I was in an awesome spot, but I’m still so far from where I need to be, and I turn 40 soon! This is a bad situation to be in. I have a net worth of $500k, which is cool, and I’m happy about that, but my expenses are between $3k and $5k per month (I thought this was a good thing!), which means I need $1.5… Read more »

Carol
Carol
2 years ago
Reply to  Wesley

What are your expenses that are $3-$5K per month? After retirement I won’t have child care, saving for college, or saving for retirement. These are our biggest expenses.

Wesley
Wesley
2 years ago
Reply to  Carol

It’s a spread. I have a young son, in private school. ~$400 for that, $400 for insurance…hundreds for groceries, gas, power, car gas and so forth…it adds up. I keep expenses in a spreadsheet, broken down by category. Then birthday/Christmas months get a bit more expensive….others are less so.

The only obvious thing I can think to cut is the cable that we rarely use, which will save ~$60/mo. I plan to cut that soon. It won’t save the day, but you’re right, my retirement expenses should decrease a bit.

S.G.
S.G.
2 years ago
Reply to  Wesley

For reference: If you are including that $400 tuition payment in your total calculations it increased your projected total by $120,000. It sounds like your number isn’t $1.5M, but you took a worst case of $5k of spending and projected it out. But $5k is 66% higher than $3k! If your expenses are consistently closer to $3k once your son is out of school then you only need $900k total. Your worst case number is very different from your best case number, so I would suggest if it’s in a spreadsheet you’ve been populating for at least a year that… Read more »

S.G.
S.G.
2 years ago
Reply to  Wesley

I’m not sure why you’re discouraged. $3k to $5k is quite a range. If $5k is an occasional spike then $1.5M is more than you need, especially since I assume you won’t be supporting your child forever so his expenses will eventually drop out of your budget. You have plenty of time and it sounds like you may need perspective. You can’t retire now, but if your money is well invested you should hit $1.5M in 10-15 years depending on the market, and that’s without putting anything else into it. With an average return of 7.2% it will take your… Read more »

Wesley
Wesley
2 years ago
Reply to  S.G.

I appreciate your reply…JD’s correct, you’re an excellent writer, SG! This does make me feel a bit better about the situation, and describes what I’ve been seeing quite well. You’re correct, I’ve been putting money away regularly ($1k/mo is not out of the ordinary), but it still feels like a small drop in an overwhelmingly large bucket! You’re right though, the $5k figure is a worse-case sort of thing, and I likely shouldn’t be thinking about that as much as I have recently. Thanks for the thoughtful reply! I’ll be re-reading it in the coming days as I figure out… Read more »

Dave @ Married with Money
Dave @ Married with Money
2 years ago

Buffett is always an inspiration to read about – crazy to me that he was flipping gum to his neighbors at age 6! We’re definitely a long way to go to hit our FI number. And once we hit it, I don’t expect it’ll be anything extraordinary. More than likely we’ll hit it, do some more math and confirm we’ve truly hit it, and then take a look at the economic and political landscape. That may be a signal to shoot for a bit higher than what we’d initially thought, or maybe it’ll be a sign that we feel comfortable… Read more »

Financial Sloth
Financial Sloth
2 years ago

Buffet is amazing. I may be getting this wrong, but when someone asked one of his kids why his dad drove a modest car and lived in a modest home, they replied, “My dad likes MAKING money, not SPENDING it.” I think that’s brilliant. In terms of our “crossover” point, I like to use our current expenses including our savings rate of about 50%. Example: If your expenses are $2500 a month and you save another $2000 on top of that, take $4500x12x25 as your target number instead of $2500x12x25. We live pretty well below our means, but for us… Read more »

Sonny
Sonny
2 years ago

Great article !! On my way driving from Dallas, Texas to St. Paul, Minnesota, I stopped by Omaha, Nebraska. I drove around Warren Buffett’s house. I was humbled to look at his house. His house was modest and simple. I could NOT believe that was a Billionare’s house. My wife was surprised. I took some pictures.

For me, I am saving and investing above 50% of my salary. Hoping to get to crossover point within 12 ~15 years. Current net worth is 300K. Having patience along the way.

Jennifer
Jennifer
2 years ago

Your Money or Your Life was the first “kick in the head” that showed me how I might be able to live without worrying about every paycheck and feeling the need to make as much money as possible for the rest of my life. We’re not quite there yet, but it’s in view (barring catastrophe). If nothing else, we’ve been able to make a lot of choices based on the quality of life we want, instead of how much money we’re trading our life hours for. I read about a lunch someone won with Warren Buffett, where they met at… Read more »

Dividend Portfolio
Dividend Portfolio
2 years ago

Great post. I remember reading that article by Mr. Money Mustache recently I was floored. I knew savings was important, but for some reason, I never made the connection between your savings rate and early retirement. I’m currently around the 45% savings rate, although it fluctuates slightly from month to month.

I should definitely stop by more often. Great content.

Dave
Dave
2 years ago

Very few people ever reach the level of wealth as WB. He even acknowledges that fact. There are still many invaluable lessons to learn from studying how he built his fortune.

Marie @ Life on the Loop
Marie @ Life on the Loop
2 years ago

Warren Buffet is probably one of the most inspiring people in the financial industry. He truly shows that with hard work you can achieve anything. Same goes for other successful people, Mark Cuban, Elon Musk, and Oprah Winfrey. I think the key to financial independence is hard work. Plain and simple.

JoeHx
JoeHx
2 years ago

I have three estimated crossover points: $400k, $600k, and $2.5 million. These are based off of 25 times my estimate for yearly spending, my wife’s estimate for yearly spending, and yearly income, respectively. I throw $1 million in those numbers and an addition milestones because, well, it’s a million. Calling it a “crossover point” made me curious if someone could do it a little more empirically than simply 25 times annual expenses. Just see if the last, say, 12 months your investments increased in value more than your spending. I think you’d need to subtract out any contributions in the… Read more »

Linda Macy
Linda Macy
2 years ago

This is a great story that proves that anyone can reach financial independence. However, far not every young person is ready to spend their youth on saving 70% of their income (which isn’t quite large nowadays either). Also, investing isn’t the strong side of everyone, sometimes they lose more than earn.

However, having several sources of income and a good investment gene (or advisor) can help one become maybe not a millionaire, but quite a wealthy person even during one’s youth.

nathan
nathan
2 years ago

as a new first time father of an 8 month old i have been thinking about ways to help secure his financial future they say retirement is all about timing so i got to thinking how about starting him out as an infant by investing 50 a month or 600 a year in a low cost index fund in my td ameritrade account for him until he is old enough to start contributing himself according to bank rate compound interest calculator 50 a month for 65 years at 7% return would be 717,936 when he is 65 this would be… Read more »

First Choice Business Capital
First Choice Business Capital
2 years ago

Thanks for this interesting read J.D. I am a huge fan of Warren Buffet and admire his work ethics and abilities to invest wisely. I totally agree with the snowball effect and how extra hours at your job, not selling yourself short and being prudent (not cheap) with your money can go a very long way.

Jessie Hunolt
Jessie Hunolt
1 year ago

This article was AWESOME! It helped me so so so much. I thank the author sincerely for writing this great piece of knowledge. I love love the snowball thing. IT WAS AWESOME! Thanks again!

-Jessie

AndresValdes.com
AndresValdes.com
4 months ago

This was epic! Thank you for the information, inspiration, and strategy!

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