What happens when you invest $10,000/year for 10 years? 🤔💭
Here is what $100,000 in total savings looks like after a decade:
🏦 Regular SG Savings Account (~2.5% p.a.):
➡️ ~$114,835 (+$14,835 in interest)
📈 S&P 500 Index Fund (~10% p.a. historical avg):
➡️ ~$175,312 (+$75,312 in capital growth)
That’s a $60,000+ difference just by letting compounding work for you instead of sitting in cash! 🚀
💡 Key Takeaways:
1️⃣ Cash is for liquidity, not growth: Standard bank accounts protect emergency reserves, but long-term wealth requires assets that outpace inflation.
2️⃣ Consistency wins: Dollar-cost averaging $10k per year builds systematic wealth over time without needing to time the market.
3️⃣ Time in the market > timing the market: Compound interest accelerates exponentially in the outer years.
