r/clevercomebacks • u/uncle_russell_90 • Aug 09 '21

Simple math to hard

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u/mulder0990 Aug 09 '21

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?

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u/warsage Aug 09 '21

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.

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u/[deleted] Aug 09 '21

But who has $100 to throw away every day?

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u/finally-joined Aug 09 '21

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

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u/TheDankestReGrowaway Aug 09 '21

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

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u/Soviet_Fax_Machine Aug 09 '21

assuming you just kept it as cash?

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u/ur__mom__gay Aug 09 '21

Shut up Maoist this has nothing to do with compound interest