3 Steps to Making Millions in the Stock Market
A lot of people regard the stock market as a scary, unpredictable thing, but actually, stocks have a long history of delivering solid returns. As such, investing in stocks is a good way to turn yourself into a millionaire, even if you earn a modest living. And if you follow these steps, you'll be even more likely to make millions over time.
Time is the strongest weapon in your arsenal when it comes to building wealth. The sooner you start investing, the more opportunity you'll give your money to grow. In fact, it pays to start investing from the moment you start collecting a steady paycheck -- even if that means funding a retirement plan or brokerage account with as little as $50 a month and then working your way up over time.
Imagine you begin investing $400 a month at the age of 25. The S&P 500 index has, over the past 30 years, delivered an average annual return of around 12%, but let's be a bit more conservative and assume you'll enjoy a 9% average annual return on your money. If that's the case, then if you keep your money in the stock market for 40 years, by the time you turn 65, you'll have a cool $1.6 million to your name. Make it $500 a month, and you'll be looking at just over $2 million, all other things being equal.
Source Fool.com
