Janitor Turns Millionaire Because of Passive Income

Do you know what the average salary of a janitor is? Approximately $25,000. With a modest living quarters, food, transportation, and clothing, there often is very little left for retirement planning. However, with the right passive income moves, even a janitor can become quite wealthy.

The Story of the Janitor

The news story seemed impossible and had the attention of the entire nation. “Janitor passes away and leaves over a million dollars to charity.” Reporters everywhere asked the same question, “How on earth could a janitor have acquired so much wealth?” Some assumed that he must have had an inheritance. Or, perhaps he was married and his wife earned a hefty income. And, if either of those assumptions were untrue, then he must have earned more money through other work. Janitors don’t just die as millionaires.

The Simple Truth

The janitor absolutely did give over a million dollars to charity, but it wasn’t because of an inheritance, a working wife, or a second career. No, he just lived frugally and invested a small portion of his earnings on a consistent basis. Technically, an investment in the stock market is considered “portfolio income”, but since there is absolutely no effort involved, I unapologetically refer to it as passive income.

How Much Needs to Be Invested to Earn a Million Dollars?

So, how much did this janitor likely invest each month to earn his million dollars? Let’s take a look.

If he began investing at the ripe age of 20, that means he would have had a solid 45 years of investing under his belt before retiring at age 65. So, what if he invested just $100 a month and earned an average of 10% per year? How much would that turn into after 45 years?

By contributing less than 5% of his earnings each year, the janitor would become a millionaire in his 45th year of investing! To be exact, the investment is worth $1,056,982.12!

What If Your Earn More and Contribute More?

What if you are in a position that earns $60,000 each year and you contribute a mere 5% (or $300) of your earnings? How much would you expect to earn over the course of 45 years?

First of all, you would reach the million dollar mark by your 34th year! Then, by year 41, you’d be at $2 million, and by the 45th year, you’d have $3 million saved up in your retirement account! Isn’t that amazing! All from just $300 a month.

I think we all have quite a lot to learn from this janitor. First of all, we could all be a little more frugal, and secondly, we can learn to earn a passive income just by investing consistently in our future!

Do you already invest? Are you earning your passive income?

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