How to Turn $10 a Month Into a Million-Dollar Retirement
Oct 20, 2023
As-Salaam-Alaikum everyone! Welcome back to Muslim Women Invest. Today, we’re going to discuss an actual client of mine who came to me back in 2017.
She's a grandmother. She did not have an income of her own; in fact, she had not worked a day in her life. She had very little money; she only had $10 a month to invest, but she wanted to start investing for her granddaughter. Together, we made a plan to ensure that her granddaughter is going to retire as a millionaire.
Consistency Is All You Need
When we had this discussion, this woman’s granddaughter was not even born. I was completely amazed and impressed that she thought about financial security for her granddaughter that early, especially considering she hadn’t worked a day in her life.
I asked her what amount of money she wanted to invest every month, and she told me that she only wanted to invest $10 per month.
I think she expected me to say it wasn’t enough. So it shocked her when I just asked her if she could commit that $10 consistently every month—so shocked that she ended up speechless.
When she finally answered me, she assured me she could consistently invest $10. But she wanted to know how that could possibly help her granddaughter. What difference could $10 make?
The Building Blocks to a Million-Dollar Retirement
I told that grandmother that if she continues to invest that $10, over the next twenty years, that will turn into $5,000-something dollars. Even though that sounds a bit low, her granddaughter will still have a head start, and here’s why:
If her granddaughter was to continue investing more money into what her grandmother had already invested—for example, if she converted that $10 and began investing $300 every month on her own, within the 60 years of her granddaughter’s life, her granddaughter will achieve a million-dollar retirement.
Compound Interest Calculator
To demonstrate how she can create a million-dollar retirement, I showed her my most favorite tool, which is called the Compound Interest Calculator.
Now, I want you to pause—this is not the interest calculator that you're thinking of.
When you invest in the stock market or when you invest in a company, it's not guaranteed that you are going to get a profit. This isn’t riba, which is the type of interest that is not allowed in Islam.
The Compound Interest Calculator we're talking about calculates the profitability of a company year after year. The company's shares go up as it becomes more profitable, so your initial amount also grows over time as the companies that you invest in become more profitable.
So, going back to the grandmother, using that calculator, I demonstrated to her how that $10 that she has will compound into $5,000 by the time her granddaughter is 20 years old. And if her granddaughter continues to invest in that account herself, if she can put in $300 per month for the next forty years after that, she will have a million-dollar retirement waiting.
Not How Much, But How Soon
This is a fantastic demonstration of the power of the stock market. You can create a million-dollar retirement within this next generation.
However, you shouldn’t go this alone—or expect it to work instantly.
The stock market is absolutely not the way to make money fast. It's not a scam, but it isn’t a get-rich-quick scheme, either.
The stock market is a legitimate, if slow, way to get rich. But if you are willing to invest a small amount of money in the beginning just to gain confidence, you can do so much more with it.
Even if you only have $10, I can show you how to convert it into a million-dollar retirement in the next forty to sixty years.
Do not let 2023 pass without you taking steps toward your financial freedom. We have 80-something days left before the end of the year. This is your chance to come work with me, or come to my free investing class.
It is not about how much you invest, but how soon you begin.
If you are planning to start in 2024, let me be the bearer of bad news: you are going to invest more money for the same or a lower return than the person who started in 2023.
The right time is now. And if you think that you can’t possibly build a million-dollar retirement this way, you can find the link to the Compound Interest Calculator in my show notes. Go look at the calculations yourself. I promise you, the math won’t lie.
CHECK THE MATH:
Plug these calculations into the Compound Interest Calculator: https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator
WORK WITH MIRAL:
If you're ready to transform the trajectory of your life and the lives of your family members through investing, book a consultation with me: https://www.invest4lifemk.com/services
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