From a young age, we're told that savings are the best way to build a fortune for your retirement.
There's also dozens of people on YouTube who all seem to be copying each other's videos almost word for word trying to explain to you how you can become a millionaire by saving just $5 per day for 30 odd years.
The problem is that not only is this a pretty pointless endeavor as it is an incredibly inefficient and long-winded way of getting to a million, but it's also completely wrong.
Even if it was true, $150 per month being squirreled away into the savings account every single month of your life is a pretty tough commitment for most people.
But the problem is that the average returns of investments have never been at 10% over a typical long-term period that included a fair mix of ups and downs.
Then there's inflation and tax - both conveniently forgotten in all of this advice.
When you factor all of this in, you will realize that even if you did follow through with this approach (which by the way is incredibly difficult to do - you can't dip into this money even once over the 57 year period), you'd need to put away almost £20/$20 per day EVERY SINGLE DAY of your working career from 18 to 75 to make it happen.
And that's assuming the average assumptions actually hold up and we don't start off with a massive recession instead...
There's also dozens of people on YouTube who all seem to be copying each other's videos almost word for word trying to explain to you how you can become a millionaire by saving just $5 per day for 30 odd years.
The problem is that not only is this a pretty pointless endeavor as it is an incredibly inefficient and long-winded way of getting to a million, but it's also completely wrong.
Even if it was true, $150 per month being squirreled away into the savings account every single month of your life is a pretty tough commitment for most people.
But the problem is that the average returns of investments have never been at 10% over a typical long-term period that included a fair mix of ups and downs.
Then there's inflation and tax - both conveniently forgotten in all of this advice.
When you factor all of this in, you will realize that even if you did follow through with this approach (which by the way is incredibly difficult to do - you can't dip into this money even once over the 57 year period), you'd need to put away almost £20/$20 per day EVERY SINGLE DAY of your working career from 18 to 75 to make it happen.
And that's assuming the average assumptions actually hold up and we don't start off with a massive recession instead...
I just turned 18 and wanted to start building credit straight away. My plan was to get a credit card, paying the mean-less transactions by contactless and instantly transferring the money from my debit account to the credit so i am not over 0 for long. Is this a good idea?. I also want to know if i dont use the card am i still going to pay interest or is that only when you use it
My man!! You hit on the nail head!! For 20 years I was told to save the money but they forgot to tell me invest it too lol!! Thanks for sharing good info brother!!
Thanks for your videos 👍
Nice video glad to see your subs are going up
You can open ISA on Freetrade, and under its umbrella you can invest yourself. Revolut also has it in their Roadmap
One more financial myth debunked. Just another 10 zillion to go!
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Very informative, thank you