J.C.’s Money Blog

My lifelong goal is to save up $100 million. This may seem ridiculous, but it’s not really. I am about to turn 30, and I want to achieve my goal by the time I turn 75. That gives me 45 years of compounding to make it happen.

Because I quit just my job this year, my goal for 2008 is to not lose any money, so lets say on my 31st birthday I still have $50,000 in net assets. That still leaves me with 44 years for the magic of compounding to help me reach my goal of $100,000,000.

All I need to do is grow my net worth by 19% per year for 44 years starting next year and I will have surpassed my goal.

Yes 19% is an unrealistic target for investment returns, but for net worth growth, its fine. In year 1, I only need to grow my net worth by $9,500, which has traditionally only taken me less than 5 months to do, so I am currently way ahead of schedule. The key will be to stay ahead of schedule through thrifty living and finding ways to significantly outperform the stock market.