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Lifetime Millionaire on One Naira Daily Investing
- By Dipo Peters
- Published February 26th, 2009
- Smartmoney
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Lifetime Millionaire on One Naira Daily Investing
If we take N1 and put it in a bank account that will enable it grow, unaffected by taxes and other charges, how long will it take to become One Million Naira or One Million units of currency? Or can it eventually become N1million? Well, let’s go to page 20 of the same book, “The Billionaire Investor” and find out. You may also wish to order for the book “Multiple Streams of Income” by Robert Allen or his report, “The Seven Secrets of Extremely Prosperous People” for more illustration. Well, let me assure you that N1 daily invested at any rate, even 5 per cent per annum, will eventually become a million naira someday. But the flip side is that the time it will take to hit this mark would be too great. It may be your great grand children that may have access to the wealth if it matures. I have written extensively on the Compound Interest formula.
For your information, the formula gives you
what various amounts of money put in an investment fund (stocks, bonds, mutual
funds etc) would become at a given period-end at a guaranteed rate of return.
The formula, A=P(1 +r/100)n, is known as the Compound Interest formula.
According to Albert Einstein, one of the world’s greatest physicists: “The
concept of compound interest is the greatest invention ever known to man.”
Think about that confession by Einstein. This formula is an invention, and if
you stick to this invention or formula, you will greatly increase in wealth. From
that formula, A=Amount at maturity. P=Principal or value of money invested,
r=rate of return of investment, n=number of years the money is invested. From
the example I gave you above, if you were to accumulate N1million using a
strategy that pays you 50 per cent per annum, by investing N1 daily only once,
then it will take 34 years to turn that amount to a million.. So, it will take
you just 34 years to become a millionaire if you can simply leave N1 in a fund
paying 50 per cent per annum. But let’s be realistic. Banks in
The stock market in
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2 Responses to "Lifetime Millionaire on One Naira Daily Investing" 
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said this on 28 Apr 2009 9:16:20 AM GMT
Illustration well understood. But what is your recommendation? It will be nice if you provide suggestions on what or where to invest in and what rate to expect. For sure, everyone wants to be a millionaire ;-)
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said this on 10 Jun 2009 12:54:30 PM GMT
Of what relevance is this article, since it is not applicable to the situation in Nigeria? Please be more realistic & give us investment tips that are more realistic. Besides, which investment institution will accept N1 daily deposit in Nigeria? Your article is totally unhelpful & discouraging to potential investors. You could do an article on what one is likely to get in say 10 - 20yrs time if he constantly invests N5000 monthly in mutual funds, stocks etc. Thank you.
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