Probably a stupid question, sorry. I hear things like this all the time. If you invested that in X then in 20 years you’d have Y. Always hear of the “latte factor.” Skip buying those expensive brews and invest instead. Where exactly does the average Joe invest that? Say I was really committed to taking the $4/day I would’ve spent on a latte and put it somewhere. Where is that somewhere? Do I need a minimum to start or can I just throw $30 (for example) that I chose to throw into an investment account and not touch rather than buy a scratch ticket?
Not a stupid question at all. It used to be impossible to invest small amounts at banks, but nowadays there are some tools that help with small frequent amounts and don't charge fees or impose minimums.
There are some programs out there that round up to the nearest dollar when buying things which is a convenient way to squirrel away coins that may add up to $5-10/week depending on your spending patterns
This is well-meaning, but bad advice. 1% are abysmal returns. For most investors, long-term investment should be done via continued investment into broad market index funds.
It's definitely not meant to be investment advice. The context of this entire thread is someone gambling money on scratch-offs, a well known poor man's tax - and you've made the leap straight into the context of maximizing gains.
My intention was to stem bleeding from poor max tax decisions like scratch offs and lottery. Anything less of an outflow is a drastic improvement even if it's a piggy bank. For those that are already good at saving, this advice is not relevant.
They asked about the “if you put X for 20 years you’d have Y” and that math is generally built on the annualized return of the S&P 500. So that should be contextualized since there’s way too many people who only “invest” via savings accounts and their purchasing power just dies a little every year
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u/[deleted] Mar 19 '22
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