The Personal Finance Podcast - From Graduate to Millionaire By Age! (High School and College!)

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Starting point is 00:00:56 Find your advisor at IG Private Wealth.com. On this episode of the Personal Finance Podcast, we're going to be talking about how to become a graduate to a millionaire. What's up, everybody, and welcome to the podcast. I'm your host, Andrew, founder of mastermoney.com. And today on the personal finance podcast, we're going to be talking about how to go from graduate to millionaire. If you have any questions, hit me up on Instagram or TikTok at Master Money Co. and follow us on Spotify, Apple Podcasts, or whatever podcast player you love listening to this podcast. If you want to help out the show,

Starting point is 00:01:53 leave a five-star rating and review on Apple Podcasts or Spotify. And don't forget to check us out on YouTube as well at Master Money on YouTube, where we're airing our new Money Q&A show is on YouTube so you can actually watch the video version of that on YouTube. And in addition, we're going to be doing some additional content on YouTube, the new millionaire series we're going to be doing in a bunch of other things as well. So make sure you check us out on YouTube at Master Money Co.

Starting point is 00:02:23 Now today, we're going to be talking about how to become a millionaire when you are in your younger years. So that's why we're calling it from graduate to millionaire. And what I want you to do is I want you guys to share your boy with anybody who is in high school, who is in college, who is just starting out their life because I want this episode to be a guide for them. This episode is created for somebody who is just starting off in life. Maybe you have kids who are around this age.

Starting point is 00:02:51 Maybe you have grandkids who are around this age. Maybe you have nieces or nephews who are around this age. This one episode is going to compact in every single piece of financial literacy that they need. No cap. So I'm going to do this in one episode so that we can give them as much information as possible in this one episode. So we're going to be talking through the steps they should be taking on how to actually start building wealth even in their early teenage years. I'm going to do this super early all the way up to the early 20s.

Starting point is 00:03:20 And we're going to talk about how much you need to save by age. So this is incredibly important because each age, I'm going to go through each age and talk about how you can become a millionaire and how much you can save per month just by saving X amount of dollars depending on what age you are. In addition, we're going to talk about some ways that they can make extra money and how they can hit these goals without having to have a traditional job. And we're going to talk about some steps.

Starting point is 00:03:44 on how to build credit, how to build the right habits, and how to open up retirement accounts as well as a teenager even. So all of these are what we're going to be wrapping up into this episode. This episode is meant to change lives. That's what we want to do here is teach people that anybody in this world can build well. And because if you're extremely young, you have the most valuable thing of all. You have time. You are a multi-millionaire when it comes to time.

Starting point is 00:04:11 Now, this is incredibly powerful because understanding what time can do for you is absolutely amazing. And that's what we're going to show you here today. When we show you, hey, a little small amount of money can grow to millions of dollars if you start today. You can absolutely change the life of your future family and everybody who is around you if you just start today. You can make your life so much easier by just saving a little bit of your money that

Starting point is 00:04:37 you earn today. So if you don't know how to earn money, we're going to talk about that. We're going to talk about a number of other things. So without further ado, let's get into it. So the first thing that I want you to do is get your mind right. And what I mean by that is there is a number of different resources out there for you to learn about personal finance. Now, learning about personal finance may be boring to some people, especially at your age if you're in your younger years,

Starting point is 00:05:03 but understanding that this can absolutely change your life if you just read a couple of books. Now, I know thinking about reading another book when you're in high school or college and all you do all day long as read books, sounds like it's the worst thing in the world. But let me tell you, understanding and having this knowledge can make you a very rich person. It can make you an extremely wealthy person.

Starting point is 00:05:20 So I'm going to give you a couple of books that can really ignite that fire in your gut so that you're going to want to start making money. And the first one is rich dad, poor dad. Now, if you've never heard a rich dad, poor dad, it's about this guy who had two dads. And what he means by that is the second dad was actually his best friend's dad.

Starting point is 00:05:37 And his best friend's dad was extremely wealthy. But he didn't have a high education. He didn't have all these college degrees or anything like that, but he was extremely wealthy because he put his dollars into assets. And he talks about exactly how he did that. Primarily, what his rich dad did was he put money into real estate. Now, then he talks about his actual real dad who had a bunch of college degrees and had all these different government jobs and things like that, but he had no money ever.

Starting point is 00:06:01 He never built wealth because he didn't know how money actually works. So the book talks through exactly how it works. It's really entertaining. It's perfect for somebody who is in their early well. wealth building years, and it's a fantastic read. The next one is the millionaire next door. This is one of my favorite books because it teaches you the difference between being rich and being wealthy.

Starting point is 00:06:19 Because rich and wealthy are two very different things. Rich people make a lot of money, but they spend all their money. Wealthy people make a lot of money. They keep all their money and they buy assets that earn them more money, that snowball over time, and they don't have to work anymore. So what they have, they are wealthy in their time. So imagine you had enough assets where you could retire in your early 30s. That is something that you can do if you make the decision now to start building wealth and thinking about financial independence.

Starting point is 00:06:46 This is the message that we're trying to spread as far as we possibly can. That's what this entire podcast is here to do is to teach you how to build wealth. The next one, and this is the basics of personal finances, it's called I Will Teach You to Be Rich. And I Will Teach You to Be Rich literally gives you a roadmap on how to build up your personal finances and have that in the back of your head. And the last one is called The Simple Path to Wealth. and that's written by J.L. Collins, and J.L. Collins is teaching his daughter how to build wealth. So these four books, if you just read these four books, you're going to know more than 99% of people out there. And if you're young and you have the power of that knowledge, you can do literally anything you want with wealth.

Starting point is 00:07:23 You can literally do anything because all you have to do then is take action and put it into practice. And once you understand these principles, it will absolutely change your life for the rest of your life. Now, can you read one or two of them? Absolutely. See which one ignites the fire. And if you start reading one and it's incredibly boring, skip over to the next one. I don't want you wasting your time if you really don't want to take in this information. Because sometimes when reading books, the time becomes right later on in your life. It kind of depends on what stage of life that you're in.

Starting point is 00:07:52 And if it's not working out for you, move on to the next book. But just check out those four books. You don't have to read all four of them, but at least read one or two of them, get an idea of how money works. Because understanding how this works, you may think you know how it works, people buying Lambos. going out and buying fancy houses. And yes, all of those things, there's nothing wrong with those things. But how you get those things is buying assets

Starting point is 00:08:14 and letting your assets pay for those things. There's a major difference here. And understanding that difference is the absolute key to building wealth. It's a mindset shift. So shifting your mindset is what these books will do. Now, another thing you can do is listen to your boys' podcasts.

Starting point is 00:08:30 Your boys' podcast right here, the personal finance podcast, is one where we are going to be talking about this stuff all the time. And what we're going to be doing on this podcast is answering questions. But in addition, what we've done for the longest time is set up something where you have the baseline to become a multi-millionaire. And the new episodes that we're going to be having coming out are going to teach you how to become a multi-generational millionaire. So this podcast is set up in a certain way so that we can teach you in order.

Starting point is 00:08:55 So listening back to some of the earlier episodes and going in order is going to show you exactly how you can build that baseline to build well. So the first level, the first step is just getting your. mind right. Understanding how to take that mindset shift from what the world thinks building wealth is to what actually building wealth is. And those two differences are very far apart. And most people don't understand how to actually build wealth. The second level is it's time to secure the bag. It's time to make money. Let's get that cheddar cheese, my friends. All right, I'm not going to say that last one ever again. I'm sorry. So what I mean by this is you want to start making money. And you want to secure that bag. So what you need to do is figure out, hey, you got two options here.

Starting point is 00:09:39 Do I want to start doing something on my own where I can be extremely flexible? Or do I want to do something where I'm working for someone else and learning skills. There's two options here because when you're young, you want to make money, but you want to make money and be building up some sort of skill at the same exact time. See, increasing your income, I want you to get this into your head as early as possible. Increasing your income is the way to build a tremendous amount of wealth. You want to live below your means and then increase your income over time. Now a lot of personal finance gurus, and I'm putting that in quotations, say, just cut back and you'll be okay. But what we talk about here is we want you to build a lot of wealth. We want you to stack up a lot of cash. We want

Starting point is 00:10:19 you just have a ton of money. The way to do that over time is to increase your income. This is incredibly important. So by doing this, increasing your income, what? you're going to see is as your income rises, you can save those additional dollars and put those dollars towards your freedom. How do you put them towards your freedom? You invest. And investing your money means that each dollar that you invest is working for you every single day. And it's working a little bit harder every single day. It's spitting off more cash. And all of a sudden, you're starting to build up this snowball. And this snowball is what is going to change your life. Because the larger that snowball gets, the more cash it spits off, it means that

Starting point is 00:10:54 you don't have to work anymore someday. And so that is why it's important to do this. increasing your income and making money early on is really important. You're going to see why, because I'm going to show you exactly how much money you've got to save every single month to become a multimillionaire by the time you're at retirement age. So if you're super busy, maybe you're in sports, or maybe you're just focusing all your time on schoolwork because you're in college or you're trying to get into a good college, then you need to think through a couple of things here because you want a job that allows you to be flexible.

Starting point is 00:11:23 And guess what? We are in the golden age of flexible work right now because the internet exists. And what the internet does, it allows you to make money without having to go work at traditional W2 job if you don't want to. So there's a lot of things that we're going to talk about here. But I'm going to talk about some of the best side hustles that you can look at, especially if you're in college or in high school, where you don't have to go out and go work at a restaurant or go work at the local grocery store.

Starting point is 00:11:46 You can actually do some of these things and make an equal amount of money and not have to work as hard and be there at a certain time. You can work it around your schedule. Because I know how it is. If you're really into sports, you're trying to get that D1 scholarship, if you're really into your academics and you're trying to get into that good school or you're just really into hanging out with your homies,

Starting point is 00:12:03 all of that stuff matters at that age. So what you got to understand is I need to be flexible. So here's some flexible things that you can do. Now, some of these depend on your skills. So if you want to really make a lot of money, you can build up some skills in some various areas. But one thing is, and this is my favorite one that anybody can do is flipping items.

Starting point is 00:12:21 You may have seen this before, but you can go to stores like Walmart or Target and find clearance items. and take those items and scan them on the Amazon seller app. Now, what the Amazon seller app is is is an app for people who sell things on Amazon. It has a barcode scanner, and you can scan those items on there and then say, hey, how much is this going to sell on Amazon? Now, I used to do this in my younger years, where I would do this and scan items on there,

Starting point is 00:12:47 and I would sell stuff like crazy like this. It's called Amazon FBA. And you can find stuff all day long using Amazon FBI. There's a ton of great resources on there. just look on YouTube or Google Amazon FBA, and there's people that this is all they talk about. So that's one way to flip items. Another way is to find things on Marketplace or Garage Sales.

Starting point is 00:13:06 You've seen people like Gary Vee do this, where he goes to garage sales and finds undervalued items and sells them back on eBay. But you can do the same thing on Marketplace. We had an episode with Ryan Panana where he would flip couches on Facebook Marketplace, and he made $8,000 a month doing that. Just flipping couches.

Starting point is 00:13:22 That's all he did was take couches and flip couches. So he'd buy a couch for $200, fix it up, clean it up, sell it for $600. If you do that once a week, you make more money than your friends do down at the local grocery store, wherever else they work. So doing this type of thing and having a flexible schedule is the best way to start off, especially if you want to start making money. The next way is learning different skills because skills are going to allow you to have more

Starting point is 00:13:44 flexibility. So things like video editing. If you know how to edit videos really well, a lot of creators out there would be willing to pay you a lot of money. I pay thousands of dollars a month for video editing. And I know tons of other creators. do that as well. And you can sell your services on things like Upwork to get your foot in the door or reach out to creators directly and say, hey, I'll edit a free video for you if you just give

Starting point is 00:14:05 me a chance. And a lot of people are going to take you up on that because they want to see your work. And if they give you a chance, you can really make some really good money every single month just by video editing. Or you could do some social media management. If you're really good on social, you're on social media all the time. You know what works on social media. Why not actually make some money doing it? You can do different freelance work for people. You can do. You You can become a virtual assistant. So what a virtual assistant is is someone who helps somebody else out. Maybe it's a real estate agent.

Starting point is 00:14:33 Maybe it's a creator. Maybe it's someone who owns a business. And they help them with various tasks, like data entry, things like that. Research, all different types of things that you can do as a virtual assistant. You could do even something like Rover where you're dog walking, but you get to make your own schedule over time. So all of these are just quick ideas of how you can make money and keep that flexibility so you don't have to just go out there

Starting point is 00:14:56 and sacrifice everything else because you're working all the time. That's not what we want to do, especially in your younger years. You want to enjoy your time. There's going to be plenty of time to work over time. But having that flexibility and being able to enjoy your time is incredibly important. Now, if you're trying to say, hey, I don't want to do any of those side hustles you just talked about. What else is out there? The way to think about this is what is your interests.

Starting point is 00:15:18 Make a list of your interests. Then make a list of what you can do to make money with these interests. A lot of interests, you can make a YouTube channel or a blog, a lot of different ways to do that. And you can promote products and every time someone buys a product through your link, you can make money. So there's a lot of ways to make money with any different hobby. It doesn't matter if it's gaming or beauty. It doesn't really matter what it is.

Starting point is 00:15:38 You can make money with a hobby. So make a list of all your hobbies. Make a list of how you can make money with each of those hobbies. And then how you can make the most money. So there's three things there and then narrow it down to how you can make the most money. And whatever makes the most money of how you're assessing it, I would go for that one. Especially if it's still in your circle of competence,

Starting point is 00:15:55 meaning it's something that you understand, then definitely go through and look at doing that. Because all you really need to do is make enough money so that you can invest those dollars and have some spending money as well so you can enjoy life. Those two things will absolutely change your life. So it doesn't have to be millions of dollars, doesn't have be hundreds of thousands of dollars,

Starting point is 00:16:13 doesn't have to be like 50 grand. You can just make a few hundred bucks and be able to do some of this stuff. So you'll see exactly what I'm talking about here. So starting to make money, once you start making money, we're going to hit up to level three. So lately, I've been noticing how fast things are changing at home. The kids are growing like crazy, clothes don't fit anymore, and routines are changing.

Starting point is 00:16:35 And it just hits you. Life is expanding. And when your life grows, your responsibility grows with it. That's something I've been thinking about more this spring, making sure the safety net we have in place actually matches the life that we're building. And that's where PolicyGenius comes in. PolicyGenius is an insurance company. They're an online marketplace that helps you, compare life insurance quotes from some of the top insurers in America, all in one place for free. And their licensed team works for you, not the insurance companies. So they help you find the right coverage for your situation without all the guesswork. And they walk you through everything. Answer your questions, handle the paperwork, and help you get the coverage that actually fits your

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Starting point is 00:18:41 Only drug dealers stuff their money under a mattress. Don't stuff your money under a mattress. You want to go out and get a bank and let your money start working for you. So there's a couple of things you want to do here. the best type of bank account to get, especially if you're saving up money, is something called a high yield savings account. Now what it does is it just has a higher interest rate than a normal bank account. Like you can go out and get a checking account, which is where a lot of people get paid. Your money flows through your checking account. Then you get a savings account.

Starting point is 00:19:06 And your savings account should be a high yield savings account. The reason why is that the high yield savings account gives you more interest, meaning your money is going to earn more money. Now, at the time I'm recording this, interest rates are pretty low. So you're not going to earn a lot of money on your money. So we're going to talk about how to fix that in a second with through investing, but allowing your money at least to have a pass-through in a place for it to sit so that you can save those dollars when you want to spend them and go out and do whatever else you

Starting point is 00:19:28 want to do. The next thing to do is to build up some credit, especially if you're in your college years or you're in your late high school years, you know, 17, 18, 19, 20, 21, those ranges, then you want to start building up your credit. Now, there's a couple of ways to do this. One is, you can get what is called a secured credit card. Now, this is not a regular credit card. this is a secured credit card. What a secured credit card is, is a card where it acts just like a debit card. How that works is it links to your checking account and you can spend whatever money is in your checking account. The way a secured card is, is you put money into that security card. Say you put $200 into a secured card. Then you can spend $200. But at the same time, the beautiful thing about

Starting point is 00:20:07 a secured card is you're also building your credit. Now, why is this important to build our credit? Because one of the biggest factors when you're building up your credit is something called credit history. Now, credit history, the longer it is, the higher your credit score goes. So once you want to start buying a car or you want to go out and buy a house later on in life, the higher your credit score, the less interest you have to pay. And if you do this, if you start building up your credit score and you do a really good job paying off all your bills and things like that as you get older, then if you have a good credit score, you can save hundreds of thousands of dollars over the course of your life by doing this.

Starting point is 00:20:41 So just starting to build up your credit score is an amazing thing to do. So that is the most important thing is your utilization rate, meaning how much of your credit you're actually using, the length of your history, and making sure that you're paying your bills on time and never carry a credit card balance. So if you have a regular credit card, never carry a credit card balance. It's extremely important. Now, another thing that you can do is if you have responsible parents, and you know if your parents are responsible for the most part financially, if your parents are responsible,

Starting point is 00:21:08 they can add you as an authorized user on their credit card, and that'll just help you build up credit. And you need to make sure that they're paying off their credit card every single month. Now, if you're in your teenage years, a great bank to look at to do some of this stuff is Greenlight. Now, Greenlight is a great bank to look at if you're in your teenage years for a number of reasons. But one of which is built for teens. And they have a number of different educational things as well. But that's a great place to look if you're in your teenagers. If you're in college, we have a number of episodes talking about some of the best bank counts out there because you're getting closer and closer to your career years. And so having that set up already is going to be so

Starting point is 00:21:42 much easier for you. I'll link some of those episodes as well down below. Now let's jump to level four. So level four is you're actually going to start investing your dollars. Now there's a couple of ways you can do this. One is you can open up just a regular brokerage account. And what a brokerage account is, it's a place that you put your money so that you can go buy stocks. A lot of you have probably heard of something like Robin Hood. But Greenlight also has this as well, where you put your money into these investment accounts. Then once the money's in there, then you can buy stocks or ETFs or mutual funds or index funds. Your boy loves himself some index funds,

Starting point is 00:22:16 because what index funds are is just a bunch of stocks in a big basket that you can buy all in one trade. But the key here is you want to make sure that you're investing your dollars. Now, the second option from a traditional brokerage account is a retirement account, and you save a lot of money with a retirement account because you're saving money on taxes.

Starting point is 00:22:33 Now, there's things like a traditional IRA or a Roth IRA. If you're making money, one of the best ways to utilize that money for the long term is to put it into something like a Roth IRA. The reason why I love a Roth IRA is because if you max out your Roth IRA, which is at the time of recording this is $6,000 a year, that may sound like a crazy amount of money to you, but I'll explain it in a second here. If you do that and you start at the age of 18 and you invest all the way over to the age of 65, you'd have $1.7 million in that Roth IRA.

Starting point is 00:22:59 Now, we're going to talk about smaller amounts here coming up because you don't need to invest that much. And we'll talk about it in a second. But the Roth IRA allows your money to grow tax free and you can pull the money out tax free. So there's a bunch of tax benefits in there. We're going to have $875,000. dollars per million of tax-free benefits, typically, if you look at today's returns. So that is a really cool way to start investing your dollars as well. For beginners, we talk about index fund investing all the time. I think it's one of the best ways.

Starting point is 00:23:25 It's the way I started off was investing in index funds and it's one of the best ways to invest your dollars. So to recap, opening up a brokerage account or a retirement account like a Roth IRA or your best bets to put your dollars in. And once your dollars are in that account, this is incredibly important to understand, then you want to invest those dollars. So you put your money into the account, then you invest the money.

Starting point is 00:23:48 A lot of people put their money in the account and they think it's invested. You have to actually take another action, another step, and invest those dollars after that. Now let's go to level five. So level five is building up good habits. So I'm going to talk about four habits that I want you guys to just keep in your mind

Starting point is 00:24:03 as you start to build well. The first one is to track your spending. Understanding how much money you're spending is incredibly important. You don't have to just bring out a spreadsheet or anything like that, you can automate your money. Or what you can also do is just save off the top, however much money you have to save,

Starting point is 00:24:18 which we'll talk about here in a second. You can save it off the top and then spend whatever you have left over. As long as you're hitting your savings goals and your investment goals, you can spend what is left over and ball out. Ghost ride the whip. Throw your money up in the air. I don't care what you do with it. But as long as you're hitting your minimum investment goals,

Starting point is 00:24:33 it doesn't matter. Because utilizing your money towards what brings you value is all that matters. The next good habit is if you really want to build a ton of, of wealth, especially early on when you don't have a lot of bills or things to worry about, be frugal. What that means is save the majority of your money. Because if you do that, if you keep the majority of your money, you're going to have a lot of wealth over time. And if you get this habit in early on, if you're in college, keep living your college lifestyle when you start your career. Why? Because you're going to start making more money over time. And as you do that,

Starting point is 00:25:03 as your income rises and you start investing those dollars, but you're living at the same lifestyle, you're not going to feel it. You're not going to feel the difference. And you're going to be building a ton of wealth really fast, and people who do this tend to retire very early. So it's just something to keep in consideration as you go about doing this. The third one, this is a major one. A lot of people don't talk about this, is learn how to build skills that will help you increase your income. You can't start this early enough.

Starting point is 00:25:28 Find skills that are going to help you increase your income. We have videos on our YouTube channel. Master Money is our YouTube channel. We have videos on there talking about the number one skills on how to make more money. And these skills will help you build up. your wealth over time. And then the last one is to avoid debt at all cost. Never have credit card debt. Never, ever, ever. You may need student loan debt because you have to go to college and your parents can't afford to pay for it for you. And that makes sense for a lot of people. Just understanding

Starting point is 00:25:55 you want to avoid debt if at all possible. So if you can avoid student loan debt and you can start working and maybe building up a little side hustle or business to lessen that cost, then go for it. But making sure you have as little debt as possible and definitely never have credit card debt is incredibly important. You never want to have consumer debt. Now, is there a good debt and bad debt? Absolutely. But we could talk about that later on,

Starting point is 00:26:16 but the good debt would be debt utilized to buy real estate or something like that so that you can make more money. Now, let's jump into how much you need to save by age to become a millionaire. So how much do you need to save in your early years by age to become a millionaire? So we've done this in the 20s, the 30s,

Starting point is 00:26:34 the 40s, the 50s, but I want to do this with folks who are in their teenage years all the way up to their early 20s, because this is something that if you learn how to do this as early as possible, you can absolutely change your life forever. So the way we did this was, the S&P 500, traditionally, at the time recording this, has had a little over a 10% rate of return. So we're using a 10% return to run these calculations. And we're saying, this is how much you need to save by age so that you can have this amount of money by the age of 65, which is the traditional retirement age. Now, I don't want anybody working to the age of 65. Let me clear the air right

Starting point is 00:27:06 here because what I want you to do is this is your minimum investment goal over time and then you're going to over time learn how to build more wealth by buying different assets and buying more investments and saving up more money every single month so that you can hit these goals faster because you can retire in your early 30s you can retire in your early 40s just by understanding this stuff and increasing the amount that you're investing every single month but this is the minimum investment goals to get to a million dollars and that's what we're talking about this and parents if you're listening to this why not start this for your kids. Why not start doing this for your kids? Because there's small amounts of money

Starting point is 00:27:40 over time. Even if you have younger kids, you can run these calculations. And we have an investment calculator coming out on the new master money website that I can't wait to share with you guys because it's going to run these calculations for you. You can say, hey, I have 50 years. How much money do I need to save every single month to become a millionaire? It's going to show you exactly how to do that. So let's start it off. I started with the earliest teenage year there is at 13 years old. So at 13 years old, if you want to become a millionaire, you would need to save $60 a month until the age of 65. And you'd have a million dollars. $60 a month is all you'd have to save to become a millionaire. So what jobs can you earn where you can earn that $60 a month

Starting point is 00:28:18 so that you can get to that point? Talk to your parents and see if your parents, if you save $30, well, they save $30. You can work out a bunch of deals like this until you get more money coming in. Now, if you saved $100 a month, on all these calculations, I also did, well, what would happen if you saved $100 a month? If you saved $100 a month, you'd have $1,000 a month, you'd have $1.7 million if you started at the age of 13. Now let's look at 14. At 14, you need to save just a little more. $63 a month. And if you saved $100 a month, you'd be at $1.6 million. Now we're jumping out of eighth grade, freshman year, whatever it is, and we're jumping into 15. We're going to get your learner's permit, maybe start driving around a little bit. You need to save $69 per month to get to

Starting point is 00:28:57 $1 million. And if you save $100 a month, you're going to have $1.5 million. So look at the difference here. A 13-year-old that starts early with $100 a month is going to have $200,000 more than the person who starts at age 15. This is why it's so important to start early. Because once you start investing your dollars early, it's effortless to make hundreds of thousands of dollars. It's literally effortless. So starting as early as possible is incredibly important. At 16 years old, $76 a month gets you to a million. And $100,000 get you to $1.3 million. So that's a $400,000 difference from the 13-year-old just in three years just because they started to save $100 three years later. At 17, $84 a month gets you to a million and $100 a month get you to $1.2 million. At $18, $92 per month gets you to a

Starting point is 00:29:46 million and $100 get you to $1.1 million. At $19, $101 get you to $1 million. So now at $100, you're dropping off to below $1 million at $992,000. So there is a $700,000. $700,000. So there is a $700,000. in dollar difference from someone who starts at 13 saving $100 a month to someone who starts at 19 saving $100 a month. It's a massive difference between the two. At $2012 a month will get you a million. At $21, $127 will get you to a million. At $23, $150 will get you to a million. And at $24, $165 a month will get you to a million. So understanding this, that you can start with these small dollar amounts is absolutely life-changing for you. Because if you start early, you have the opportunity to become a multi-millionaire just by starting early. And let me tell you,

Starting point is 00:30:41 as you start doing this, you're going to say, hey, I don't understand how this is ever going to get to a million dollars. But once you understand how compound interest works, it starts off really slow at the beginning. And it's going to feel like a slog until you start to save, and it's going to start really slow. And you're going to have to really work your butt off to get to that first $100,000. It may feel like it's taken 15 years. years before you get your first 100,000. But as long as you stick to this plan and you keep investing that $70, 80, $90, $150, whatever it is depending on your age.

Starting point is 00:31:11 If you continuously do that over time, what's going to happen is compound interest is going to start to work for you. And all of a sudden, it grows extremely fast because once you start to run these numbers and you use some of these calculators, you can see the early years it takes forever and it's hardly moving. But later on, it's going to really compound and really snowball. And in our new course, Index Fund Pro, we showed this exact thing. We're going to show you step by step on how compound interest works.

Starting point is 00:31:35 It's very cool to watch because time is its biggest asset. So understanding how this works and understanding that you can build tremendous wealth is what we want to teach here at Master Money and on the personal finance podcast. So I hope you guys enjoyed this. I hope you learned a ton. And again, if you're listening to this, share this with your friends so that they can learn how to build wealth too. You guys can build wealth together, support each other, create a support group on this. This is what we want you to do because we want to build a massive community here of a bunch of people who want to build wealth together.

Starting point is 00:32:06 Everybody's in this together. We're all doing this together. That's what our goal is, is everybody is building wealth. Because anybody in this world can build wealth. We truly believe that. That's our mantra. So stay tuned. Stick around because we're going to be teaching you as many things as we possibly can on how to build more wealth in your life.

Starting point is 00:32:23 Listen, I appreciate each and every single one of you listening to this episode. Thank you so much. If you have any questions, hit me up on Instagram or TikTok at Master Money Co. And follow us on Spotify, Apple Podcasts, or whatever podcast player you love listening to this podcast to. And if you want to help with the show, leave a five-star rating and review on Apple Podcast and Spotify. And don't forget to check us out on YouTube as well at Master Money on YouTube. Thank you guys so much for listening. We'll see you on the next episode.

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The Personal Finance Podcast - From Graduate to Millionaire By Age! (High School and College!)

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