How can students become millionaires?

Quite easily, actually… The drum I beat on nearly every day in my classroom is that for about $100 a month after they graduate, they will be financially independent by the time they reach my age. That’s about three bucks a day!

I beat this drum, so they avoid the financial pitfalls that I made. My undergraduate degree was in finance, but I didn’t do what I am teaching these kids. Don’t get me wrong… it’s not like like I’m not destitute. But personal finance was not taught in my high school or college.

The best things about being 18 years old is you have a great deal of time for your money to compound.

And students always ask, what does it mean to invest in “the market.” Here, the market means the S&P 500. At Vanguard, that’s the ETF with the symbol VOO or the mutual fund VFIAX.

As my regular readers know, I use VTSAX (ETF VTI) which is the total stock market of all 3900+ companies that are publicly traded. VFIAX is about 80% of VTSAX, but VTSAX has more stocks to self-cleanse.

So how can we become millionaires?

If you started a little late like me, you will likely have to invest a more than $100 a month. But at a later stage, you may be more likely to have a higher income with which to invest. The best things to do is use an investment calculator like this one. These investments may not “hockey stick” like the younger investor. But remember the adage? The best time to plant a tree was 20 years ago. The second best time is today.

From age 40 to age 60, you still have 20 years to compound. That can get you to about half million dollars. Unfortunately, the later we start, the less we will have to live on during retirement.

So teach your youngsters… put $100 a month into VFIAX (VOO) or VTSAX (VTI) as soon as they have a job! That is today’s lesson.

As Always…

Thanks for reading! I hope this information provides food for thought. Remember that I am not a certified financial planner, a certified public accountant, a licensed real estate agent, etc. My content is for educational purposes. I am a math educator who happens to have a finance degree. Like they say, never take financial advice from a math teacher! (Do they really say that?)

But you should spend less than you earn, invest the difference, and stay out of debt!

I would so appreciate your sharing my content with anyone you feel could benefit. And if you would like a free exploratory conversation or just want to shoot the breeze about personal finances, call me and leave a message or send a text to 570-731-0425.