Building Wealth Takes Time: The Value of Patience in Blogging
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Chapter 1: Embracing the Journey
For anyone feeling disheartened by their financial progress, it’s essential to remember that the path to wealth is often gradual.
At 24, I completely relate. We often encounter glamorous tales of instant millionaires and "side hustles" that promise quick riches. To be honest, this portrayal can make the pursuit of financial success appear overwhelming and unattainable.
You don’t need an arsenal of tools or complex strategies. What you really need is a solid plan and the discipline to follow through. If you commit to a savings strategy over the long haul, you will see results. Plain and simple. 😊
To illustrate this point, consider an example. Suppose you’ve been blogging for some time, and your earnings are around $3 a day. That might feel incredibly discouraging, right?
While $3 a day won't sustain anyone in a developed country, it can significantly enhance your chances of enjoying a comfortable retirement.
Let’s crunch some numbers:
$3/day translates to $90/month.
Now, historically, the stock market has yielded an average return of about 10% annually. If we invest that amount in a typical broad index fund over 30 years (which is usually less than a person’s entire working life), ideally within a tax-advantaged account like a Roth IRA, that modest $3 a day could grow to an impressive $177,653.54!
However, you might think, “$170k won't buy much in the future!” On average, inflation sits at around 3% per year. When we account for that, the present-day value of that amount would be approximately $102,017.65!
While $100,000 may not seem like a fortune, remember that it could generate roughly $833.33 per month if invested in the stock market (before taxes).
It might not be sufficient for retirement in the U.S., but it would certainly alleviate many expenses like rent, mortgage, or bills.
So, take heart! If your blog is currently earning just $3 a day, you're making significant strides toward securing a more stable financial future for yourself and your family.