When I was in eighth grade, I had a class called, ' The Seven Habits of a Highly Effective Teenager'. If you've never heard of, 'The Seven Habits of a Highly Effective Teenager,' I encourage you to do so. This is a book, written by Sean Covey. In this book, you learn many life changing things and it's written by a man who had tasks in his life that he had to over come and has done so.
However, in one very specific part of this book, you learn how to take one-Hundred dollars and turn it in anyone from one-hundred thousand dollars to one-million dollars. Now, it doesn't say in specific that you can do this with inheritance, but let's face it, money is money.
So, depending on your age whenever you receive an inheritance is depending on how much money you can receive just by saving it all. You see, in the book, Mr. Covey gives an example. Let's say, you're eighteen years old. You got an inheritance of one-thousand dollars, because your grandmother passed away and she left her remaining money to you. Also, let's say that you can have the money right away.
So, you get this inheritance from your grandmother passing, and you decide that you want to put it in a Savings Account. Good idea. So, you put in a Savings Account at the bank. Let's say that this bank has a .06% rate every year for you keeping your money in their possession. So, every year they add .06% to your current amount.
So, you have one-thousand dollars in the bank. The next year, because of the increase from the bank for having your money, you're new balance is about one-thousand and sixty dollars. Then the next year after that comes, and you get another increase for keeping your money in that bank, so, that next year, your balance ends up accumulating to around one-thousand, one-hundred, twenty-three dollars and sixty cents. That's two years that have gone by, you're now twenty, and since you have not touched your inheritance, you have now gained another one-hundred, twenty-three dollars and sixty cents.
Now, I know this may not seem like a lot right now. However, only two years have gone by. What about twenty more years? Twenty years from now, if you leave your inheritance alone, you will get roughly one-hundred and thirty-five thousand dollars. Now, that entirely beats the one-thousand dollars that was left from your grandmother! You waited twenty-two years to touch it, and you're forty years old, but it was well worth the save. If you don't want to stop at forty, you don't have. Save up until retirement. You can save however long you choose. This is clearly how you can turn your family inheritance in to a fortune.