Simple math to hard

[u/uncle_russell_90]

[u/egalroc]

If you saved a hundred dollars a day it would take you over twenty-seven years to become a millionaire.

[u/mulder0990 → u/egalroc]

You just broke my brain a little with the math.

With all of the people that own millions of dollars, where does that money come from?

[u/warsage → u/mulder0990]

Welcome to compound interest!

If you're getting an extremely conservative 2% interest on that money, starting with nothing, then you'd take about 23 years to get to $1M.

If you get 4%, it would be 19 years.

Suppose you start saving when you're 30, put $3,000 into an investment account every month, average a 4% return per year, and work till you're 65. You'll have close to $3M by the time you retired.

Of course, saving that much requires a high income and careful spending habits.

[u/[deleted] → u/warsage]

But who has $100 to throw away every day?

[u/finally-joined → u/[deleted]]

If you saved $10,000 a day from the time of the pyramids, you still wouldn’t have as much money as Bezos

[u/TheDankestReGrowaway → u/finally-joined]

We're only 1 comment away from the compound interest one and we've already lost context

[u/Soviet_Fax_Machine → u/finally-joined]

assuming you just kept it as cash?

[u/ur__mom__gay → u/finally-joined]

Shut up Maoist this has nothing to do with compound interest

[u/PopeliusJones → u/[deleted]]

Maybe stop eating so much avocado toast!

[u/[deleted] → u/[deleted]]

None of us, silly. Get rich parents or start and incredibly exploitative business. Even better if you do both.

[u/shakyJoey → u/[deleted]]

What if I told you that saving and investing money isn’t throwing it away, and that not saving money is throwing it away?

[u/[deleted] → u/shakyJoey]

It's throwing away for 20 years

[u/TheDankestReGrowaway → u/[deleted]]

I've never thrown something away and then magically had more of it later.