Is it difficult to accumulate € 100,000 in 10 years starting from a basic capital of zero? Difficult but not impossible. In the following article, the experts of ProiezionidiBorsa show you how much monthly savings you need with the variation of the yield obtained. Here’s how much to invest per month to accumulate a capital of 100 thousand euros in 10 years starting from zero capital.
Knowledge and discipline are the basis for accumulating money
In the 1940s, people dreamed of being able to have 1,000 lire a month, to have a good life, perhaps to buy a house. Today we dream of having 100,000 thousand euros in the bank. To buy a house, to be able to change the car, to indulge in some luxury.
Today it is not easy to be able to accumulate 100 thousand euros from nothing. But with careful planning and an efficient strategy, the goal can be reached in 10 years.
It is necessary to have a clear money management strategy that requires the identification of instruments that guarantee a minimum return. Furthermore, a constant accumulation of capital is required to invest in the chosen instrument.
So you need not only knowledge but also discipline. Know where to invest and save constantly.
How much to invest per month to accumulate a capital of 100 thousand euros in 10 years starting from zero capital?
How much to save? This is the point. How much money do you have to put away a year to get to accumulate 100,000 euros in 10 years starting from scratch? If this is the goal, simply putting the money under the mattress, the calculation is simple. To get to € 100,000 in 10 years, you need to save € 10,000 a year, or € 833 a month.
But by how much can the monthly figure be reduced by investing in an instrument that, for example, makes 1% a year? Let’s imagine that we have identified an instrument with this yield, for example a deposit account. Assuming that a constant return can be obtained for 10 years, the monthly savings must be 793 euros per month.
Here’s how much monthly savings go down if the annual return goes up
But if the yield rose to 2% per annum, the average monthly savings would drop to 753 euros. In practice, to accumulate 100 thousand euros in 10 years, having a yield of 2%, you would have to save 753 euros per month.
But what happens if the yield rises to 4% per annum? That the monthly savings drops to 679 euros. Is it difficult to find returns of 4% per annum? It’s not easy these days. You can get these yields with bonds issued by companies, perhaps with a ten-year residual life.
Or by investing in the stock market through PACs, accumulation plans. One studio statistic has shown that a portfolio invested in 2000 at 50% in bonds and 50% in equities, has returned on average in the last 20 years the 4.5%.
Deepening
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