Would you prefer to have $1 million cash right now or a penny that doubles every day for 30 days?

National Be a Millionaire Day on May 20th each year celebrates the idea of being a millionaire. Very few of us haven’t imagined what it would be like to be a millionaire. If you happen to be one of the few, this holiday is for you. And also for those of us who like to imagine spending millions.
Albert Einstein is credited with saying “compound interest is the eighth wonder of the world.”
To get back to the original question, would you prefer to have $1 million today or one cent that will double every day for 30 days? If you chose the million dollars, you would leave millions on the table.
If you chose the penny and passed up the million dollars, on the second day your penny would be worth two cents, on day three it would be four cents, on the fourth day it would be 8 cents. By day 18 the penny will have grown to $1,310.72. By day 28 it will be worth over a million dollars: $1,342,177. On the 30th day it would be worth an astounding $5,368,709!
If the penny were to be allowed to double for another 30 days, the penny would grow to over $5 quadrillion (five thousand trillion!) dollars.
One of the things this illustrates is that compound growth takes time to make a dramatic difference. For the person who wants to have enough money to retire in comfort, starting early is the key to success, even if the starting amount is small.
The Reality is . . .
Not everyone has the opportunity to ‘double their pennies’ everyday, but there are some things you can do to celebrate National Be a Millionaire Day and get you started:
  • Start a savings account. If you have an existing savings account, review it to make sure you are earning the maximum interest available. Increase the deposits into your savings account.
  • Review your financial portfolio with a trusted expert.
  • Review your investments – Look at ways of improving your investments.
  • Add to your 401K – If you do not have one, start one.
  • Pay off your credit card.
  • Review your spending habits. Find ways to spend less and save more.
A million dollars today may not be what it used to be, however, having one million dollars in your bank account is still a major financial success.

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