How does someone with no talent become rich?

The easiest way for anyone to obtain wealth is through investing in the stock market. This won’t get you rich quickly, but it’s easy and doesn’t require much (if any) skills. All you need is money to invest.

You don’t need a lot of money. You could even become a millionaire investing just $10 a day. Granted, it will likely take several decades, but it’s easy and doesn’t require much, if any input on your part. All you need do is invest as much as you can into index funds, like the S&P 500. This fund has returned 9.70% over the past 50 years, including dividends.

The more you invest, the more you will eventually have. If you invest $10 a day (that’s $3,650 a year), after 40 years, you will likely have about $1.5 million. If you could invest $10,000 a year, you would be a millionaire in about 25 years. After 40 years, you might have more than $4 million.

The younger you are, the greater your chances of amassing wealth are. The greatest advantage young people have is time. The more time your money has to compound, the more money you will have.

Someone who invests $5,000 a year for 40 years, will likely have about $2 million. Compare that with someone who started investing later in life. Let’s assume they invested a lot more money, say $25,000 a year for 20 years. The person who invested $20K a year will have about $1.4 million after those 20 years.

Think about that. The person who invested $5,000 a year for 40 years cumulatively invested $200,000 of their own money and ended up with about $2 million. Conversely, the person who invested $25,000 a year, but only was in the market for 20 years. Their cumulative investment would be $500,000, but their wealth would have only grown to $1.3 million.

It’s easy to invest. Don’t over-complicate things. Start early. Invest as much as you can. Put most of your money in a broad-based index fund, like the S&P 500. Years from now, your older self will thank you.

originally published on Quora

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