Investing Won't Make You Rich 

Rich is being content with yourself and your situation in life. Money helps, but it can’t be the sole foundation for one to have peace.

This is the honest, practical, and fundamental message every one need!

I was looking something for my own financial content in Instagram when I found this video.. and I’m so glad I did! Already subscribed and will definitely check on other videos in ur channel.. thanks for sharing and keep inspiring 👍 best regards from Indonesia 🇮🇩

Thanks very much for the nice and practical information; and/or I guess some would team it as advice (modest). I like practical types of things! (No bling)!

Great video, Erin. Building wealth is not sexy or flashy. It takes making a sensible plan and sticking to it. Oh, and don't check your portfolio every day. It will only give you heartburn. It's a long game. I'm so glad I didn't sell everything in 2009. If you are going to invest in individual stocks, only invest money you can afford to lose. Otherwise, stick to the indexes

Nice click-bait-y title lol...yet I agree 100%. I think the biggest difference between Rich and Wealth is that, for most, only Wealth is generational. Great Vid!

Great content!! Keeping ( or telling ) it real. 💯🆒

Important thoughts to consider!

Thanks Erin, I was a little confused at first on your point of Not being Rich by investing, until I understood your Wealthy vs Rich definition. At 58 I’m still holding out for that great idea to get me my jet, but my back-up plan of investing and living below our means will make us wealthy. Love your channel. TfT

Tough!! Love it and agree with your thoughts.

Sometimes your videos make me happy, sometimes they make me sad; but they ALWAYS make me feel something! Great work!

Erin, as always, a great video, reminds us all, while we may not get to be the Kardashians (thank God), we can have a good life in retirement by doing a basic approach. Allow time to build my growth, give up a little bit ‘Now’ for a sustainable future, low-cost huge rewards. Again thanks for the point outs...

We were super savers for decades. Are we rich in retirement? No, but we live a very comfortable life on very nice cruise ship vacations. This year we will be on the water 86 days. That blows most of the interest and CG.

Hi Erin, love this video! It reminds me of the story of the turtle and the hare. Because the earlier you invest in a reasonable way, such as you put it, The S&P 500 and by the time that you retire, you’ll have a very nice nest egg. But if you try to go the path of the scammers on You tube or other media sources you could lose a lot of money and time to be able to get back on track. Thank you for your awesome advice! Looking forward to your next video! You ROCK!

Erin, your on-camera presentation just keeps getting better. Your secret is to be a thoughtful and relatable person who, with data, good sense and some of that Northern Michigan grit, teaches important lessons on personal finance. And with this video, you make some important distinctions between building wealth (the goal for most investors) and getting rich (typically, a caricature of the wealth-building process). The compounding information, with that nice bit of storytelling around the parable of the grain of rice, offers scaffolding for helping us understand the meaning of "wealth" and brings home that distinction. Loved the line from the Real Housewives about "I'm outta here, my husband will have a jet here tomorrow." Would that we were all just a phone call away from having a private jet rescue us from an awkward moment.

Investing will make you comfortable.

Speaking as a CPA and CFE, thank you very much for this video! Speaking truth to the "get rich quick schemes" is so important and people need to understand the true motivations behind the people that try to sell them. Skepticism is one of our most important and most underutilized tools. Great video!

Good video. But I think it's still a little too optimistic. That 10 and a half percent return is not adjusted for inflation. My understanding is that 7-8% is the historic inflation adjusted rate of return. With that in mind, we can calculate what the expected growth of our investments will be at retirement if saved by each age using the following formula: (Initial investment) (1 + (Expected Percentage Point Return/ 100)) ^ (Planned Retirement Age - Age at time of Initial Imvestment) = Inflation Adjusted Value of Investment at Planned Retirement Age So, for an initial investment at various ages of $100,000, we can see how much it will grow to at various starting ages (if the market makes it's historic 7% rate of return). 100,000 * 1.07 ^ (65-20) = $2.1 million 100,000 * 1.07 ^ (65-25) = $1.5 millon 100,000 * 1.07 ^ (65-30) = $1.1 million 100,000 * 1.07^(65‐35) = $760,000 100,000 * 1.07^(65-40) = $542,000 100,000 * 1.07^(65-45) = $387,000 100,000 * 1.07^(65-50) = $276,000 100,000 * 1.07^(65-55) = $197,000 100,000 * 1.07^(65-60) = $140,000 100,000 * 1.07^(65-65) = $100,000 Personally, I'm trying hard to save up money during my mid twenties so I can have at least $100,000 invested by age 30. That would - on it's own - take me to $1 million in inflation adjusted dollars by traditional retirement age. At a safe withdrawal rate of 4%, that's $40,000 a year. Anyways, that's actually my basic retirement plan. I'll aggressively save till 30, hopefully hit $100,000 invested in total market index funds and then be CoastFire until a traditional retirement age. After 30, I'll probably invest less money as I move on to a different stage of life with a different of concerns. But I should have the financial flexibility to still invest some - especially if that 7% inflation adjusted return isn't being hit by the market.

We saved, invested keeping expenses low, lived comfortably but not extravagantly, stayed free of debt and helped family and those in need along the way. I wouldn’t want a private jet lifestyle! Too much other baggage along with it. Helping the many not as fortunate is more satisfying than buying things.

Great video. 100% factual information. It’s no secret, just discipline. Outstanding Erin. I hope that all who watch this video begin immediately changing their strategy as needed. Thank you for covering this subject 👍🇺🇸😎...

Erin dropping another banger!

This is very valuable. Thank you Erin!

Another great post. Most of the "wealthy" people I know that got rich by investing, did not get wealthy until their later years. If you save and have enough to live on in retirement, and then still have some in the market for growth, you could be rich. My father in law retired in in 1990, and passed last year. He wasn't wealthy, but left a nice little nest egg. So, I wanted to see how money grew during his retirement years. So, with the S&P returns, if you had $500,000 left in that growth bucket in 1990, you'd have about $15 million today. Also, there is a sure fire way to get a 100% return on your investment. Make sure you contribute enough to your 401k to get the complete employer match.

WOW that was a great example of time in the market!

What a great video! The reality of investing is wealth over time…not getting rich. Wonderful to hear that from a young person and that message makes it clear that anyone with a little discipline can become wealthy.

Love your videos! Sounds like a lot saved. When you add in the effects of inflation it is not near as much as it sounds. Have you thought about educating folks on how much 2.5 million will be in 40 years as far as spending power goes. I think it's hard for younger people to understand.

5:36 “I ain’t talkin bout RICH, I’m talkin bout WEALTH!” - Chris Rock

To me, being "rich" is not just having material wealth, but also having a happy life, great knowledge and insights, having achieved great friendships (which is something to be earned, not given), having a positive effect on others, that sort of things. Wealth is a measure of what you possess, but your possession is not only money.

Thanks for the video. I understand your point and I agree with it but to be honest I found this video a bit confusing. To me, rich and wealthy are synonyms and by my reading, the Ameriprise Financial quote was also using the terms interchangeably. I really liked that you called out fake gurus on RU-vid but it seemed odd to contrast that with the House Wives show (nothing wrong with the show itself) because those “reality” tv shows put on just as much of a facade as someone selling courses on RU-vid. Which comes back to how you defined rich verse wealthy, my takeaway from your description is that Warren Buffett (not my favorite example but he was mentioned in the video) would be considered wealthy not rich which is the opposite point to this video, at least by my understanding. I think a term like ultra-high-net-worth individual instead of rich would have cleared things up a bit more (although it is all subjective). Just some feedback. Anyway keep up the good work, I really enjoy your content.

yes yes and yes

Great video! Savings rate is far more important than rate of return on your way to your first million. Reducing taxes and fees come in second and third. 99% of people would be better off simply investing in low-cost, diversified index funds and focusing their time and efforts on increasing their salaries and savings rates instead of trying to beat the market to get the perfect asset allocation between a basket of ETFs. Focus on what you can easily control first. Increase earnings, decrease expenses, decrease taxes and fees and simplify your strategy.

Great video today Erin! Mind boggling how some people fall for the youtube marketers. If they actually made thousands a day, they wouldn't be chasing after $99!

Lot of truth in this one, Erin. People equate wealth with the glittery rich, which are mainly celebrities and athletes and in many cases, not all, those people don't remain rich for more than a decade after they made their money. I'm one of those in the 5M bracket and I definitely don't think of myself as 'Rich', sure I'm comfortable and feel financially safe but I'm not out there buying 150k cars or 30k watches. Thanks for another great video!

Investing well will make you rich. Cash flow is king. Need to build passive cash flow to cover all expenses. It's good to be counter cyclical and not to be a typical investor.

Well said, Erin. Passing it on to the kids, hope they watch this..

I have a Question What is the difference between a regular Ira and a Roth Ira and what is a Roth conversion thank you

The S&P 500 has an average return of 10%. Yes over 100 your time period, not necessarily your time period

I think I'm spoiled from the past two years I didn't start investing until the pandemic and it felt like easy money. The stock market went up like crazy and it's like you could do no wrong

I suppose it depends on what you think rich means.

Being rich definitely can make you happier. The fact people say being rich won't make you happy is just an excuse because they haven't become rich yet. But then most people confuse rich with financial independence and wealth anyway.

It is really a matter of perspective. Sure if i put my net worth up against the 1% or the .1% sure I feel like a lowly commoner. But honestly everyone watching this video is likely "rich." If you have a home to live in, clean clothes to wear, food, and clean water. You are already way ahead of billions on this planet. You are rich but you might not really see it because who is around you. I think once you understand just how rich you are, you can use that to save and invest, and you will become wealthy. Sure we may still see "rich" as those with ridiculously high incomes and/or only those with a net worth with at least eight zeros, but learning to not compare and be envious of those with more, we all will feel so much more wealthy and probably rich as well.

JL Collins enters the chat

"Rich" needs to be defined. To me, it's not the top of the pyramid above that is super, mega and filthy rich. Rich is not only secure but also the ability to give away, or spend frivolously, substantial amounts of money say, $10K or more annually. So, for me, not only is it about assets, it's about being on firm financial ground. That's being debt free, or close, and being able to pay for your necessities on Social Security alone. If I were a financial adviser, that is where I would have my clients aim.

Generally most won't make the returns listed because they don't have 100% in stocks or an Index Fund like the S&P 500. Economic wisdom 50 years ago was to always keep some money in fixed income/stable funds. Typically the % stable portion was about your age in decades. So by your 40s, you'd only keep about 60% in the market. Even if it made 10%, it was offset to the low side by the low returns on that 40% of your account. So one following a balanced approach would have had to invest even larger sums along the way to achieve the really big numbers shown in the calculator projections. So even people in their 60s who did invest large amounts like the $10k/year over 40 years didn't end up with $5.3 million after 40 years ... more like maybe $3-4 million if they had a balanced approach to there investment accounts.. That generally fits what we saw - didn't hit the large numbers as expected because we had a balanced approach. We still did great, but many of us don't have as much as we could because we weren't 100% invested over the last 40-50 years.

Your Penny month only had 30 days... I would suggest investing in a month with 31 days 🙂

I am 57 therefore, I do not have a long time horizon!

Investing won’t make you wealthy in 5 years but wait 30 or 100 years your garnered to be very wealthy.

The only part of stocks that can provide compound interest is dividends... beyond that it is what the market will pay you for it. One day a stock may be worth $100 the next 5 based on news or how people feel about the future of the company....Ask anyone who owned the symbol of America for the 20th Century GM General Motors... Again there is no compound interest in stocks... there is price appreciation

You are rich if you have a high income. You are wealthy if you have a high net worth.

I like her!!..yes. yes

Just for perspective, having $1,000,000 in 40 years is only worth $373,134 in today's dollars with a modest 2.5% rate of inflation. Using the 4% rule that would only yield $14,925 a year (in today's dollars). Someone retiring in 40 years is going to need a heck of a lot more than $1,000,000 when they reach retirement.

Some of those scam artist adverts appear within your videos!

You know I love your work, but I feel like I need to warn you. Someday, somehow, a short clip of you saying "BS" is going to go viral. I hope you cash in. 😎

I'm rich in God's grace!

Tesla is an opportunity of a lifetime for retail investors.

So the S&P 500 won’t make you Rich?

Wow, I really feel like the difference is in what you define as rich. I've always been of the mind that if you don't live paycheck to paycheck then you are in fact rich. Anything more than financially secure is hyper rich to me.

Showing investors a 12% return for their investing time line is extremely unlikely. I say 6 to 8% would be more likely.

The Housewives?? BWAH HA HA HA!! Yep, everyone has their own thing. You keep watching that reality show. When I want a reality show, .... there's this cool, down to earth, youtuber........what's her name again? :)

The new FANG is going to be fuel, agriculture, natural resources and gold. Inflation is roaring, foods are in short supply and prices high when they are in stock.

I disagree with this 1. First of being a millionaire makes you in the top 1.5% so i would consider being a millionaire as rich. 2nd saving and innvesting 5 to 10k is barely anything, so im going with higer amounts like 35 to 50k if you did that at 7% witch is the average adjusted for inflation from 20 to 65 is 11 to 16 million$. A 16 year old working 60 hrs a week on mimum wage would make 26 k a year, if he invests all of that for 6 years he can coast fire without investing anything and become a millionaire by the time he is 45

$100K in Tesla in 2019 is $2M today. That and other investments exist if you look for them. Most people can't spot them, and fewer people have the courage to invest in them. Also Wealth is measured in time. If you have passive investments that cover your expenses and lifestyle indefinitely, then you are wealthy. Rich is subjective. You don't have to be a baller in the 0.1% to be rich. Best case is passive cash flow wealth and riches. The problem is taking productive investments that make you returns and using that cash for lifestyle. It's hard to do when you calculate the time value of money into the future.

This is such a clickbait title. You invest to have the capital in the future, so you can *have* those franchises, rental properties, etc. Unless you are already in the top 1% of wage earners (e.g., athletes, top surgeons, etc), you invest religiously to turbocharge your wages to a point where you can have a better stake in businesses later on.

Go wash the dishes

Are you insane? Change your title. Lol.

I’m up over 10,000% on my bitcoin investment over 8 years. Still adding daily.