Turn $20 Per Week into more than $100,000 • Think Big Financial Melbourne (2024)

FAQs

Is it worth investing $20 a week? ›

Your $20 a week might seem insignificant now, but with time and the power of the S&P 500, it transforms into a significant sum that can support your dreams, whether that's a comfortable retirement, a college fund, or financial freedom.

Small amounts will add up over time and compounding interest will help your money grow. $20 per week may not seem like much, but it's more than $1,000 per year. Saving this much year after year can make a substantial difference as it can help keep your financial goal on your mind and keep you motivated.

The 20% - Investments

As per the original budgeting rule, you must dedicate 20% of your income to savings & investments. However, if you have limited debt (lower than 20% of your salary) and limited wants (lower than 10% of your salary), you can invest 20-40% of your income.

Forty years later, if your retirement savings account averages a modest 6% annual rate of return compounded quarterly, you'll have nearly $173,000 from those $20 a week additions to your retirement savings. $41,600 of that will be your contributions. The rest will be investment earnings.

I focused on saving 40% to 50% of each paycheck and anything extra. After my 401k, other deductions and taxes (my tax rate was ~25%), the first year I earned somewhere around $1350-$1400 a paycheck. I tried to save at least $500 to $700 of every paycheck and because I kept my expenses low, this wasn't hard to do.

Those will become part of your budget. The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

You can double 20k quickly by “flipping” items. The idea is to buy items for cheap, then sell them for more. Some of the best items to flip include furniture, sports memorabilia, and even websites. Another way to double 20k quickly is by investing in real estate with EquityMultiple.

Diversifying your portfolio is a crucial strategy when aiming to turn $20,000 into $100,000. By spreading your investments across different asset classes, you can reduce risk and potentially increase returns. Diversification helps protect your portfolio from the volatility of any single investment.

Five 20s make 100. 20x=100, then divide by 20 on both sides. Therefore, 5 twenties make 100.

How much should you be investing? Some experts recommend at least 15% of your income. Setting clear investment goals can help you determine if you're investing the right amount.

How much is $20 a week in a year? ›

If you make $20 per week, your Yearly salary would be $1,040. This result is obtained by multiplying your base salary by the amount of hours, week, and months you work in a year, assuming you work 40 hours a week.

You don't need a lot of money to get going in the market these days. The growing popularity of zero-commission trading means that even $20 is more than enough to buy a piece of a potentially lucrative investment.

This chart shows you how, over a period of 30 years, investing $50 every week could grow your portfolio to more than $1 million. Chart by author. Assuming a 15% annual growth rate (on average), a $50 per-week investment could grow to a value of more than $1.5 million after 30 years.