Take a look at a dollar in your pocket. Go ahead, take it out, and look at it.

What does this dollar signify to you? What’s it real value.

Did you estimate the power of this $1 to be less than the one dollar – did you think it was just a dollar, or did you understand this was a seed for your million dollar money tree.

Just this one dollar alone is worth a million dollars. I’ll get to that in a bit. Before we do though, let’s assume for a second that whatever we have learned growing up about money is not true. Because we have incorrectly learned the mere basics of money to such a fraction and formed all the rules and thoughts around that money, that whatever we do with it is not correct.

A few realities that we have to accept before we can get to the million dollars.;

  1. Taking interest is haram (forbidden by Allah’s decree in the Quran) so we will look at ways and methods which don’t involve haram.
  2. Interest, even if we accept that current day interest is not haram, gives us a return of between 0% to 5%
  3. The inflation rate on average is 8% year over year.
  4. Based on these assumptions even if interest is not haram you lose 3% of your buying power each year just by doing nothing and keeping your money in the bank.
  5. As an example if a loaf of bread costs 100 cents today (1$) – and you had 100 cents in the bank. Today if you took all you money out you could buy that loaf of bread.  At the end of the year, the bank would give you 5% interest on your 100 cents so you would have a 105 cents in the bank. However, due to inflation, which is 10%, the loaf of bread would now cost 110 cents. So even if you took out all your money from the bank you would not be able to buy that same loaf of bread that you could buy a year ago.
  6. The stock market has given a consistent return of 12% since 1912 (in the USA). This is by merely looking the S&P500 index (the S&P 500 index tracks the stock markets 500 top companies in exactly the proportion in which they are part of the stock market).
  7. Most large companies, like Wal-Mart, Nike, Coca Cola etc have been giving a consistent return of 15 – 25%

Now the Magic, we will look at what the $1 can do for us when invested in different places (without looking at the effect of inflation and reinvesting all profits).

Do you dream about making it big in life, making millions while avoiding riba / interest as a muslim. Discover the best selling method of increasing your wealth when you download your copy of the bestselling book ‘Wealthy Muslims Will Inherit Jannah’ NOW. Check out this link!

  1. $1 invested today not invested
  2. $1 invested today in the bank (giving us a 5% interest)
  3. $1 invested today in the S&P 500 (giving us a return of 12%)
  4. $1 invested today in a low growth company (giving us a return of 15%)
  5. $1 invested today in a medium growth company (giving us a return of 20%)
  6. $1 invested today in a high growth company (giving us a return of 25%)
Years

In the

In S&P500 Low Medium High
Bank Growth Growth Growth
Company Company Company
5% 12% 15% 20% 25%
1 1 1 1 1 1
10 2 3 4 5 7
20 3 9 14 32 69
30 4 27 58 198 646
40 7 83 233 1,225 6,019
50 11 258 942 7,584 56,052
60 18 801 3,812 46,956 522,024
61 19 898 4,384 56,348 652,530
62 20 1,005 5,042 67,617 815,663
63 21 1,126 5,798 81,140 1,019,579
73 34 3,497 23,455 502,400
77 41 5,503 41,024 1,041,777
87 66 17,090 165,964
97 108 53,080 671,418
100 125 74,573 1,021,142
110 204 231,614
120 332 719,357
123 385 1,010,645
148 1,303
173 4,411
198 14,938
223 50,585
248 171,300
273 580,082
285 1,041,744

So the simple question is – do you want to leave a legacy of a million dollars when you leave this world or do you just want to tear this dollar up. The choice is entirely yours.

Go ahead, rip this dollar into pieces, or buy a cup of coffee – same difference.

P.S. The above calculation is condensed for this post. If you want to see the actual calculation with yearly figures, return rates and the whole bells and whistles you can download it from here.

P.S.S To learn how you can invest this dollar into a million download your copy of the Wealthy Muslims Will Inherit Jannah ebook.