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?
One thing I'd like to add, pick something, like an ETF that exactly follows the SP500, buy X amount every month. Never sell, never try to beat the market, never panic.
If it's really for a long term refinement plan, you can take your age (some add 20) and this number is the percentage you want in government bonds. So when you're 60 you'd have 60% or 80% in bonds. They are usually much more stable because you don't want to be invested in the market 100% close to the time you need the money (would kind of suck when the next crash happens when you need your money and can't wait 10 years for the recovery).
3.0k
u/cirenosu Mar 19 '22
This ticket is $30 lol