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

FAQs

Is it worth investing $20 a week? ›

The 40-Year Legacy: Building Wealth over a Lifetime

Imagine looking back after 40 years to find that your $20 a week has grown to more than $262,000. This is the power of long-term investing. It's not about making quick wins; it's about setting yourself up for a future where financial stress is a distant memory.

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.

Making $4,000 a month based on your investments alone is not a small feat. For example, if you have an investment or combination of investments with a 9.5% yield, you would have to invest $500,000 or more potentially. This is a high amount, but could almost guarantee you a $4,000 monthly dividend income.

Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.

Invest in Dividend Stocks

If you specifically want passive income, you might consider dividend stocks. Dividend stocks often pay quarterly, usually with a yield in the range of 2% to 5%. Stocks that pay dividends tend to be well-known, financially stable companies, so the risk is typically low compared to other stocks.

Is 20k a lot of money in savings? ›

The recommended amount to save varies from person to person, as everyone's financial situation differs. But for many people, $20,000 is a sizable emergency fund goal that will go far. If you have a large chunk of savings set aside, make sure you keep it in a bank account that earns interest.

If you can handle eating the same thing all the time and keeping it simple, it's quite possible to eat healthy and be eating enough with $20/week and not be spending too much time cooking either.

Still, the general rule of thumb is to strive to invest 10%-20% of your income regularly into individual retirement accounts (IRAs) and other investment portfolios in order to achieve a normal retirement age (in your mid-60's).

$20 weekly is how much per 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.

If you're just getting started investing, you might not have a lot of cash you can put to work. Maybe you only have $20 to invest right now. The good news is that most brokerages have done away with account minimums and commissions, which means you can get started with any amount of money, even $20.