How much do I have to save to become a millionaire? This video explores compound interest over time, and calculates the average return of the total stock market throughout history to determine how much you have to invest now to retire a millionaire.
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Not sure how to invest? I personally use M1 Finance. They have an incredible and easy to use app. You can easily set up an account: https://mbsy.co/DS3WM (This is my personal referral link so I think they give me $10 if you set up an account using it!) It is also very easy to create a Roth IRA thru M1. Robbinhood is also an easy to use investing app.

Not sure what to invest in? I'd recommend putting your money in the Vanguard S&P 500 ETF ticker symbol: VOO. It has had a return of over 14% annually since inception, double the 7% annual interest rate I used to run the calculations in this video. Also, ETF's like VOO are automatically diversified so there isn't really much long term risk.
Vangaurd's discription of VOO:
- Invests in stocks in the S&P 500 Index, representing 500 of the largest U.S. companies.
- Goal is to closely track the index’s return, which is considered a gauge of overall U.S. stock returns.
- More appropriate for long-term goals where your money’s growth is essential.

Learn more about what I talked about in this video:
What Is Compound Interest?
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan. Thought to have originated in 17th century Italy, compound interest can be thought of as “interest on interest,” and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount.

KEY TAKEAWAYS
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan.
Compound interest is calculated by multiplying the initial principal amount by one plus the annual interest rate raised to the number of compound periods minus one.
Interest can be compounded on any given frequency schedule, from continuous to daily to annually.
When calculating compound interest, the number of compounding periods makes a significant difference.

What is the Stock Market?
The stock market refers to the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place. Such financial activities are conducted through institutionalized formal exchanges or over-the-counter (OTC) marketplaces which operate under a defined set of regulations. There can be multiple stock trading venues in a country or a region which allow transactions in stocks and other forms of securities.

While both terms - stock market and stock exchange - are used interchangeably, the latter term is generally a subset of the former. If one says that she trades in the stock market, it means that she buys and sells shares/equities on one (or more) of the stock exchange(s) that are part of the overall stock market. The leading stock exchanges in the U.S. include the New York Stock Exchange (NYSE), Nasdaq, the Better Alternative Trading System (BATS). and the Chicago Board Options Exchange (CBOE). These leading national exchanges, along with several other exchanges operating in the country, form the stock market of the U.S.

Read more about the stock market and compound interest on: https://www.investopedia.com/ (Not sponsored)

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This is not financial advice ;)

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