It really made no sense to me when he said ''It doesn't matter whether I'm right or wrong, whether the market goes up and down. I'm good regardless''. People are really losing a sh*t ton of money out here. I personally have been buying stocks since the beginning of the year and yet nothing's changed, but I've been reading articles of people still in the same market pulling off over 350k in just a couple months. Its tough out here!
Sometimes, the strategies to stay on constant green in a downturn markets are quite rigorous for the regular-Joe. Matter of fact, they are most successfully carried out by experts who have had a great deal of skillset/knowledge of the market. Maybe you should hire one.
@@Harperrr.99 A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
@@322dawgg Sure. NICOLE DESIREE SIMON, a well-known person in her field, is my advisor. I got to know her through my wife. It's my wife that has her number, but you could further investigate her credentials and contact her yourself.
I was lucky, when I graduated from high school. No college my dad took me to his financial advisor and had me start putting $100 a month away. I didn't understand it for awhile and at some point I stopped contributing when I had a company match. Now that first 10000 is about 35000. To get through to kids though is hard. They want the new shiny things.
I think it's fair to point out $941/month in 1941 is the equivalent to $20,000/month in 2023 money... Not a small sum by measure. I like the math, but please don't skip over the inflation adjusted buying power of money.
$20k a month is $240k a year. that means somebody saving 20% of his salary starting in today’s dollars would have to be earning $1.2 million per year to make it comparable. And save it for 80 years. I don’t know any 20 year olds making 1.2 million. I’m not knocking the power of compound interest because I talk to my kids all the time about it but IMHO this is really not a relevant example.
Well I think the point is, if you saved that much today, you could be a billionaire. That just furthers their point because for us 941$/month is doable. I know it wasn’t realistic back then , but it proves it’s realistic for us. And obviously if you raise that over time, who knows, you could be a multi billionaire.
Stuff like this is why I’m glad I started investing at 23. Now I’m 24, been at it for a year, and making plans for how to increase my investment amount each year. I’m hoping to start maxing out my Roth IRA and HSA each year by the time I’m 26
Hell yea Darren! You got this! I’m 28 and have been doing the same thing since 23. “Pay yourself first” is such an important mindset to establish young and looks like you’re dead set on the financial freedom path!
Don't forget. Who you marry is the biggest financial decision you'll ever make. All that work can go "poof" or the opposite depending on who you choose to share the rest of your life with.
So glad I started investing at age 26. My career path got kind of derailed shortly after I started though, and I ended up leaving my career for two years to try starting a business. Unfortunately it failed, but I am back in my career now at age 33 years old investing 50% of my income! I hope to continue this track for as long as I can and plan is to buy a home in my late 30s.
I would deff use some of that 50% for more business ideas, etc. Just putting all your money in a 401k is a scam for sure on many levels. My business is failing to so I know about all of that, but I'm making it back on real-estate.
Very good episode..31 years old here, about to have our 2nd child..definitely makes me more motivated to be smart with our money and also be around my kiddos and friends more.
When creating a forced scarcity budget, what is a healthy percentage of your gross income which should be spent on enjoyment, such as hobbies, vacation, activity with friends etc? Things other than bills, savings and emergency fund. Perhaps you have already addressed this on your channel but I'm just working through it now and haven't come across this info as of yet. Thank you!
I'm 38 and keep thinking "why didn't I start at 20?!" But you can't get bummed out about the past, just learn from it and focus on what you can control now. Shoot you might still have 40 more years ahead of you that you can be investing!
Welll.... I got a corvette at 18, but at the time it was just a used car. A 12 year old 1969 used car. I did sell it to eat in college, worked till 58, investing since 24, and bought a much older 1969 used corvette :)
Glad you brought out the disposable time graph up. Challenge is for ‘employee’ based people, the opportunity to invest money into something like an S&P to make the most of compounding is less likely as houses and family is where money generally goes.
Not all of us had people in are life to to teach us how to build wealth or what to do with money...some people don't figure it out until much later in life.
Ha! I bought a 1976 Corvette in 1999 at 16! Yep, dumb financial decision. Over the 5 years I had it, it cost practically as much as buying a brand new '99 Toyota Corolla (Considering purchase prices, gas mileage difference, insurance, maintenance and values when sold in 2004). How do I know? I did the math AND my next car was a '99 Toyota Corolla that I bought with the proceeds. There's something to buying a mostly depreciated asset, learn to do a little of the maintenance yourself, keep it for several years, then sell it for the same or more than you paid. You avoid most guaranteed depreciation costs on the vehicle, but learn to live with variable maintenance costs. In 2019, I did it again, bought a 2009 Porsche Cayman S (with cash), have done more than half the maintenance myself, and it's worth $5k-8k more than what I bought it at. If you're not into cars, buy a 5-year old econo-box and ride that thing into the ground for 15+ years and have even more money than me.
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
@@emiliabucks33 This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
@@emiliabucks33 Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
A=A0 exp(kt). Continuous compounding. A0=initial investment amount, k = percent growth per year, and t=time invested in years. k is too tough...estimate 0.1 (SP average). Obvious t is wrapped up in the exponential. Start early to make this kt exponent large.
Getting started early is a good reminder. However, to invest 900+/mo (12,000/year) in 1941 is totally unrealistic because the average salary in 1941 was tremendously lower, around 900/year. You should really have a more realistic example, rather than a hypothetical. I generally like most of what you do, but this was a bad example.
37 right now. Almost 14 years of contributing towards my government pension. 3 years ago I started additional retirement accounts. 12k in a 457 and $18500 in my Roth IRA. Should be able to retire at 54. Definitely by 57. Or if I still enjoy what I'm doing I can keep working. I guess I could also die tomorrow.
I was looking at a 73 Corvette on marketplace when I was watching this ..but im soo cheap, my driver is a paid off ford fusion .. my wife has new the bmw.. and im too cheap to pay 10k for a stingray
I respect the sentiment, but by all means I would aim to be wealthy. 🙂 It seems like saying you want to be rich is frowned upon socially when I view it as a goal that strives for you to be your best self!!! Imho, lol
Guys, in $943 in 1941 is $19,634 in 2023 dollars. Per month. The best way to become a billionaire is to start already extremely wealthy or get unrepeatably lucky. It’s not an attainable goal.
Average salaries in 40-50's has to be only a few thousand dollars per year. So, $943/month is unrealistic to have as a regular worker...even white collar college graduate.
The issue with this calculation is that $1000 in 1940 would be over $21,000 a MONTH in todays standard. I agree with the principal but the visual is misleading
Personally, I’ve got some Rental Houses and My Wife’s 401K invested in Vanguards S&P 500 Index Fund! Downside of REIT’s is you don’t get the full advantage of Right-Offs and Depreciation! But, if the authorities ask, I didn’t say anything!
My favorite thing is taking my retirement planning spreadsheet, and taking it 10 years beyond my actual practical plan... and oh man... That extra 10 years just becomes impractically amazing. My own personal plan may or may not work out all that well... but for my kids... dude. If they want to stay home after high school and put money away in investments instead of paying rent or going to college then I am all for it. They have to work, and they have to invest, but if they spend 4-5 years doing that, then there is no income they could make after college to make up for it. After that they can go to college, or keep working, or get married, or whatever. But saving some 80% of their take-home for that first few years would set them decades ahead. Getting a lot up front kicks that exponential growth off at such an early age that it becomes ridiculous.
I feel like I must be missing the boat. Investing $943.81 a month in 1941 would be the equivalent of investing like $230k today with inflation, right? Seems a bit unrealistic. That $943 “monthly” investment would be nearly the average annual wage in ‘41. 🤔
Not so sure about their maths. Taking inflation into account, $943 back in 1943 is the equivalent of $16,321.17 today. If I was able to invest this amount on a monthly basis I'd expect to be a billionaire today too! I'd like someone to run these numbers for a reasonably % of someone's salary & also adjust for inflation.
Love the content on this channel. But I have to poke fun at how to become a billionaire using time. Investing $943 per month starting in 1941 sounds like such an achievable plan...until you realize that $943 was just a few dollars under the average annual income for Americans at the time. So yes, if I invested 12X my salary each year for 44 years, I would probably be a billionaire.
Like the Rollin Stones say, Time in on My Side. What's wrong with watching TV and playing video games? 1 thing you said in here was wrong. It doesn't not take 10,000 hours to be an expect. I can spend 50,000 hours reading about women, I still won't understand them.
Really the problem with time being the most valuable asset is that you get more time by delaying retirement. But that doesn't add value, it takes away value. So time isn't the most valuable asset, it's actually the least valuable.
He is wrong saying that the appearance of wealth through material items, like cars, doesn’t attract women. As I close in on 61, I ain’t wasting money on a sports car that my reflexes can no longer exercise the same as I could in my 30s. I did own a Corvette in my 30s and I’ll never change that if given the chance. I was still investing. Life was meant to lived. A sports car in your 60s is just dumb AF. Get a motor coach, a boat, a log cabin, etc, but a sports car that everyone, including yourself, laughs at “the old crusty dude trying to be young”. 😂😂😂
