# Investing With As Little As \$1/Day

Let’s do this in two minutes.

Here’s some quick math to help you with your investing goals. No bullshit, no preamble. Share this with your friends to show them how easy retirement and investing can be. At 29, I’m better prepared than some 50-year-olds I know. Here’s how.

The math here assumes you’re 30 and will invest small amounts steadily until 65. That’s 35 years of growth. I invest aggressively in index funds, and I’ve been averaging around 7% annually. Let’s see what investing tiny amounts every day can do from 30-65 at 7% growth.

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• \$1/day (or \$365/year) = \$53,988 at 65
• \$2/day (or \$730/year) = \$107,976 at 65
• \$5/day (or \$1,825/year) = \$269,942 at 65
• \$10/day (or \$3,650/year) = \$539,884 at 65
• \$20/day (or \$7,300/year) = \$1,079,768 at 65

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That’s bonkers, right? Every \$1/day you put away can add \$50,000+ to your retirement account? Time to bust out the ol’ piggy bank!

As for what to invest in, I can only tell you what my money’s in: the RBC U.S. Index Fund. (I also recommend TD U.S. Index Fund – e, which offers similar results, but with a lower MER.)

Depending on your goals, you might want to invest differently, so investigate options yourself and see if you can find better. All I know is I don’t worry about retirement anymore. With ~\$20,000 in that index fund already and \$10/day contributions, I’m anticipating ~\$740,000 at 65.

# How To Get Your Kid Set For Retirement

I’ll just cut to the chase: When your kid is born, put \$12,400 in an investment generating 7% interest, and they’ll be a millionaire by 65. I know that sounds crazy, and I’m making a LOT of assumptions, but you can find all the justifications for my logic in this post here. Again, this is presented as data ONLY. Listen up, new parents. It’s time to make your kids millionaires.

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All of these equal \$1M:
0 – \$12,400 x 65 years of 7% growth
1 – \$13,200 x 64 years of 7% growth
2 – \$14,100 x 63 years of 7% growth
3 – \$15,100 x 62 years of 7% growth
4 – \$16,200 x 61 years of 7% growth
5 – \$17,300 x 60 years of 7% growth
6 – \$18,500 x 59 years of 7% growth
7 – \$19,800 x 58 years of 7% growth
8 – \$21,200 x 57 years of 7% growth
9 – \$22,700 x 56 years of 7% growth
10 – \$24,300 x 55 years of 7% growth
11 – \$25,900 x 54 years of 7% growth
12 – \$27,800 x 53 years of 7% growth
13 – \$29,700 x 52 years of 7% growth
14 – \$31,800 x 51 years of 7% growth
15 – \$34,000 x 50 years of 7% growth
16 – \$36,400 x 49 years of 7% growth
17 – \$38,900 x 48 years of 7% growth
18 – \$41,600 x 47 years of 7% growth

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By this logic, you should actually reconsider sending your kids to university! The average four-year university undergraduate degree costs \$84,000! DO YOU KNOW WHAT THAT CAN DO FOR A 23-YEAR-OLD? Invested at 7% interest – (I know some of you are still skeptical, so here’s further justification from someone far smarter than me) – THEY’D HAVE OVER \$500,000 IN THE BANK BY 50. Wait 10 years more AND THEY’RE MILLIONAIRES. Here, crunch some numbers and get back to me. What’s especially wild is these are essentially set-and-forget investments: NO FURTHER CONTRIBUTIONS NEEDED! How are NO new parents doing this? It’s goddamn insane! Index funds, FTW!

If I’d known at 18 what I know now, I would’ve skipped post-secondary entirely. One of the richest and most successful people I know didn’t have any formal schooling AT ALL. Another friend is an artist and is set to retire with \$800,000+. It turns out financial success isn’t all that linked to skills or intelligence at all. All you need is (a little) Money and (a lot of) Time!

If you completely ignored my post about not having kids, don’t ignore this one. Making a new millionaire from scratch costs \$12,400 and your kids will be grateful forever. I don’t know about you, but that sounds like the best damn deal I’ve ever heard.

Wishing you and your kids riches,
Unconbentional

# My Artist Friend, or How to Become a Millionaire While Making \$700/Month

My artist friend “A” has got it made. At only 25, she’s already invested enough in index funds to achieve \$800,000+ at 65 with no further contributions. How, you ask? Here’s how someone earning less than \$10,000/year will become a Millionaire in her lifetime.

“A” isn’t rich, but she’s Smart As Fuck. Her family was able to put away some money for her education, but she also did plenty of working and saving on her own. She ended up getting shitloads of scholarships though, so within a year of finishing school, she found herself sitting on \$50,000! Well, fuck, I guess that money’s going into index funds! A longtime Mr. Money Mustache devotee, “A” figured index funds were the best place for her money, and at her age, IT IS. With the 7% return I talk about so much, her current \$53,896 becomes \$807,063 in 40 years! To make matters even more mindboggling, SHE EVEN HAS AN EMERGENCY FUND OF \$14,000. We’re not even done yet, because SHE’S SO FRUGAL, THIS WOULD LAST HER 20 MONTHS. Not possible? Here’s her living sitch.

Income is a terrible indicator of success. “A” makes \$700/month as a freelance artist. Over a year, that’s \$8,400. Her monthly rent is only \$200. That’s because she lives with three other people. She’s been with her boyfriend for over five years, and even if something terrible happens, she’s open to moving back in with family. She can live comfortably on \$700/month. She spends \$80 on groceries, about \$45 on entertainment, and puts aside \$40 for potential emergencies. Her phone costs \$25, about \$25 goes into dental, and stuff like clothing is practically negligible because she shops at thrift stores. She breaks even every month. WHAT ARE YOU AND I DOING WRONG.

“A” may be frugal, but she’s not living a small life. She’s already been to five countries including Japan and China, she’s done a road trip across the US, and she’s also seen several Canadian provinces. She also – like me – works at her dream job, so it really doesn’t feel like work at all. She’s practically retired already! What would YOU call it if you could do whatever the hell you wanted and just happened to make \$700/month?

“A” also knows she can do better. In my interview with her, she talked about getting to \$15,000/year reliably and aiming for \$375,000 as her FI goal. If, right now, she puts aside just \$100/month for her index funds, she’ll hit that number in 25 years! Mr. Money Mustache once said, “If You’re Not Getting Rich in your 20s, You’re Doing it Wrong”. Your twenties are the MOST IMPORTANT TIME TO SAVE because the compound interest gains are unreal. Being a Millionaire is within your reach.

“A” makes less than \$10,000/year. What’s your excuse?