Chapter 1

Why a Million?

This book has one big idea. If you start early and stay patient, small, ordinary deposits can grow into a very large sum over the years.

The motto of this book

Start early. Time is your biggest advantage, and you can’t buy it. We’ll show you why in Chapter 5.
Be persistent. The most important things happen at the end of the road, so you can’t quit halfway. We’ll come back to this in Chapters 6, 9 and 12.
Use compound interest. Your money earns money, and that money earns even more. We’ll explain it in Chapter 4.

Why a million?

A million is a symbol. It’s round, it’s big, and it sounds like something from another world. But it’s only a number. What matters is what stands behind it: money that gives you choices. You can change jobs when you want to. You can study what really interests you. You don’t panic when the car breaks down or you lose your job.

Here’s what the road to that million can look like. All you need is to save about €417 a month for 40 years, assuming a 7% return per year.

The road to a million: €417 a month for 40 years

The shaded area is money that compound interest earned for you. Out of almost a million euros, only about €200,000 is your own deposits.

Look at the shape of this curve. For the first few years almost nothing seems to happen, and the shaded area is thin. Later it grows faster and faster. That’s exactly why patience matters so much.

Who is this book for?

It’s for you if you’re a teenager, or if you’re just starting to think about money. You don’t need to know anything about investing or business. We’ll explain every new word in plain English. All you need for the maths is a calculator, and the book comes with its own compound interest calculator.

The map of the book

Four parts, one road

First the foundation, then the heart of the book, then practice. At the end we’ll deal with your head, because that’s what decides whether you stick with it.

How to use this book

Every chapter has the same layout: a short story, charts, a “Real life” box, an “Honest about the numbers” box, a “Quick summary,” and a 15-minute task. The tasks are the most important part. People who do them learn much faster than people who only read.

If you’re not 18 yet, talk with your parents about every decision involving money. In Chapter 11 we’ll explain what you can do on your own and what you can only do with their help.

Quick summary

A million is a symbol of freedom and choice, not a goal in itself.
Small, regular deposits are enough to reach a million if you have a lot of time.
This book teaches principles. It doesn’t promise quick profits.

Your 15-minute task

Grab a sheet of paper and write down three things you’d like to have or be able to do someday thanks to money.
Subtract your age from 65. That’s how many years you have to work with.
Write today’s date and sign it. This is the day you start your road.

Assumptions behind the calculations: a deposit of €417 a month (for simplicity, counted as 12 deposits at the end of each year), a 7% return per year, interest added once a year, no inflation, taxes or fees. Amounts are rounded.