Day 1 – Taking The 2% Challenge – The Millionaire Blueprint

A family member recently sent me an email outlining a financial growth strategy that involves focusing on a daily 2% increase. By focusing on that, and only that, you can turn $1000 into $1,000,000 over the course of one year. That’s right, ONE year!

I’m all about setting financial goals, having a budget, and crunching numbers, so I thought I would give this theory a go and see how realistic or unrealistic it is. I have a brokerage account that I really wasn’t using much. It had about $2500 worth of stocks in it. I sold those stocks and started off with cash. $2449.61 to be exact. I then made a spreadsheet to track 2% growth and daily balances. I needed to earn $48.99 for 2% growth on my first day.

I thought I would wait until January 1st before starting the challenge, but then I jumped right into it yesterday. When I logged into my account, I noticed that the value had gone up to $2490 because several partial shares of stock had been sold off. I only needed to earn about $9.00 to get to my 2% goal for the first day.

I placed a trade on AMC, wanting to buy 80 shares. Unfortunately, only 45 shares were fulfilled. I cancelled the order on the remaining 35 and placed a sell limit order on the 45 at a price that would give me the return that I needed. An hour or two later, the order was triggered and I sold at the price I wanted to meet my first day’s goal of 2%. It sounds like it was easy but I could have just gotten very lucky.

Initially, I see a very big problem with this theory because of the Pattern Day Trading Rules that are in effect. If you don’t have more than $25,000 in an account, you can only make 3 day trades within 5 business days. That means that 2 out of 5 business days need to be funded from outside sources of income. Also, since the stock market is only open 5 days a week, and the theory involves DAILY growth of 2%, the two weekend days need to be funded externally also. 4 out of 7 days of the week need to be funded from outside income until the account reaches $25,000. According to the spreadsheet, that doesn’t happen until Day 119 – after 4 months.

Since I do have a day job as well as several side hustles, I am looking at this as an aggressive savings strategy. 4 days of the week, I will be transferring funds into the account from my other income to meet the daily goals. I don’t know how long I will be able to do that before it becomes economically impossible, but it will be interesting to see how far this can go.

Day 1
Starting Balance: $2449.61
2% Goal: $48.99
Ending Balance Goal: $2498.60
Actual Ending Balance: $2499.15


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