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 Nigeria pay about 3.8 per cent per annum on average.

The stock market in Nigeria had averaged 25 per cent in the past few years. Most Certificates of Deposits (CDs) pay about 10 per cent interest less withholding taxes. If you were to invest N1 in a bank, it will become N1million in 370 years.