January 23, 2026
By Ray Henke
Every 20-year-old is a future millionaire.
Quick trick to get rich
With time on their side, any 20-year-old can become a millionaire, thanks to the power of compounding interest.
Assumptions
1. Currently 20 years old
2. Retire at 68
3. Initial investment of $1000
4. Interest rate is 12%
Doing the math
Using the "Rule of 72" with a 12% interest rate, then an investment will double every 6 years. 72 / 12 => 6 years
Retire at 68, starting at 20, means 48 years of investmest. 68 - 20 => 48 years
48 years until retirement, doubling every 6 years, means the money will double 8 times. 48 / 6 => 8
Doubling 8 times means
| Count | Start | Finish |
|---|---|---|
| 1 | $1,000 | $2,000 |
| 2 | $2,000 | $4,000 |
| 3 | 4,000 | $8,000 |
| 4 | $8,000 | $16,000 |
| 5 | $16,000 | $32,000 |
| 6 | $32,000 | $64,000 |
| 7 | $64,000 | $128,000 |
| 8 | $128,000 | $256,000 |
$256,000 is not $1,000,000
Agreed, so start with a single $4,000 investment intead. If $4,000 seems like a lot, then invest $1,000 a year for 4 years instead.
48 years is not quick
Yes, the timeframe is not quick, but the changes to be made are what is quick.
Conclusion
With time on their side, every 20-year-old is a future millionaire, if they choose to be so.