Here’s how to make a $1 million share portfolio by investing $1,000 a month

By utilising compound interest and giving it time, it’s mathematically possible to grow a $1 million share portfolio by investing $1,000 a month.

What’s compound interest?

Normal interest is pretty easy to understand. If you have $100 in a bank account with a 2% annual interest rate, you should have $102 after one year. If you started with $1,000 in the bank then you’d finish the year with $1,020 in the account.

The power of compound interest is when the interest starts earning interest. Using the example of starting with $1,000, the extra $20 earnings during year one would earn $0.40 of interest itself in year two. The original $1,000 would also earn another $20 of interest. When you do that process of interest earning…