How to Get Rich Slowly
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- Опубликовано: 1 сен 2021
- Everyone wants to get rich quickly. We play the lottery. We invest in cryptocurrency. We look for the next big thing that will get us our dream of being rich. Unfortunately, for most people, getting rich quick plans are just not realistic. Sure, a few people will get lucky, but they are the overwhelming exception. For most people, the only way to become rich is to do it slowly. And, it turns out that with a bit of very simple math, getting rich slowly is attainable for just about everyone.
Welcome to Data Demystified. I’m Jeff Galak and in this episode we’re going to look at the simplest way to get rich slowly. There are no gimmicks here. No shortcuts. Just very simple math and a bit of consistency. And you won’t get rich overnight...that’s just not realistic and anyone who claims to offer you a plan to do so is running some kind of scam. Instead, I’m going to try and show you, as intuitively as possible, just how powerful something as simple as consistency and time can lead to a very sizable pile of money, not overnight, but rather in the long term.
Link to video about exponential growth: • Covid-19 Exponential G...
Link to interactive spreadsheet: docs.google.com/spreadsheets/...
Covid-19 is growing "exponentially." But what does that even mean? In this video I explain how we should be thinking about exponential growth by first demonstrating how compound interest works. You'll quickly see that compound interest, the way that, say, a bank pays you money in your savings account, is exactly the same way that Covid-19 spreads.
I'm Jeff Galak, PhD, and I do this all without ever using any fancy jargon or any complex math. I focus on intuition and and insights to help you get an intuitive understanding of complex, important, and timely topics in statistics, data science, and data analytics.
Link to video about me and why I made this channel: • Data Demystified - Who...
Link to Data Visualization of Covid-19 Growth and Compound Interest (two tabs in one worksheet)
docs.google.com/spreadsheets/...
Link to Data Compound Interest Video Walkthrough:
• Compound Interest Visu...
Link to Covid-19 Exponential GrowthVideo Walkthrough:
• Covid-19 Growth Visual...
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I just found your RUclips channel! It could be interesting to see a video on how debt is like the other side of the same coin as retirement savings, ie how compound interest works against building wealth. The false “intuition” of being able to make the monthly debt payments and therefore being able to “afford” taking on more debt is the millstone around the necks of many Americans preventing people from being able to get rich slowly. Anyway, super excited about your channel!
People who get minimum wage and aren't living at home with their parents while paying little or no rent, and/or getting things like a free car from them and perhaps medical and dental too, generally don't have much if any money to save. Further, if they have student loan debt, things get even more perilous. A big problem is not only that minimum wage is not enough to live on for most people, but that any savings you might have can easily be wiped away by even relatively small problems. Maybe you need new tires for your car? Or just to fix a mechanical problem? There goes effectively months of savings. Or, you get yourself into debt by paying it off with a credit card ... ouch(your rates as a poor person will be usurious). Maybe you get a cavity or fall off your bike when you hit an oil slick. I could go on, but the point is, there is ALWAYS something troublesome coming into people's lives. So even if you've been good and trying your best to save, and are lucky enough to even be able to have savings, being poor makes it VERY hard to KEEP those savings, much less grow them. I think your math works great, as long as we ignore what real life is like.
If you're telling getting rich means less than 5 million at 60 it's not that much money after inflation
Glad to see this video since the ads for this channel are so often “get rich quick” or “massive passive income” schemes.
Ha. I don’t get to control those so I’m glad to have some counter content!
Preach it
Super intuitive. Crazy helpful. Thanks.
Thanks!
I think the trick to starting investing early is that you will have many years left prior to retirement and those regular contributions will add up to a big number. The retirement age doesn't change. So, if you start investing later, you will have fewer years left till you retire. Even if you contribute more, you won't have enough time left to grow it as a person who started investing early.
Your videos are very educational and much appreciated, thank you: signed, a kid from the ghetto.
Thanks!! Good luck to you!
So at 38 with a BA degree and currently in Grad school( but only making 17 an hour in a low-level management job), I've lost too much time...At least I can encourage my eldest and children to save for their future. :(
Damn
Sound advice, but people should realize that $1 million 40 years from now will be worth a lot less than $1m today due to inflation.
Totally fair, but the growth rate I used for all my math was inflation adjusted. The s&p returns about 11% annually, or 7%, inflation adjusted. I used the latter. So the values in the video are in terms of 2021 dollars. Thanks for the comment!
That's not that simple. You assume that all your investments will multiply (some investments will be the loosing ones inevitably) + you don't consider the inflation factor. What 500.000$ could buy you in 40 years? Probably not much, not even a decent property.
To sum up your idea "be tight on budget all of your life and by the age of 65 you will have some decent savings"
Imo It's better to spend those savings on learning new skills, changing the career, breaking out of 9-5 slavery to build the real wealth.
Unfortunately, for most working class people, saving money is next to impossible. You need to attain stability first before you can even begin to save. Its my understanding that the number of males still living with their parents into their 30s has increased in the last decade. Compared to the 80s the value of the working wage has decreased significantly (people back then could go to community college on a part time job).
Saving is still a good idea. People should prepare for their future, and in my opinion, they should prepare for the worst. Global climate change is going to bring all sorts of unforeseen consequences. A person that is 18 today is likely to see a very different world by the time they are 65. In addition to saving money, I would suggest learning some prepping skills. The world probably won't end by then, but no one knows what the global economy is going to look like when the time comes.
Lastly, moving to Norway might be a good idea. I bet they will do better than most by then.
Of course you are right. Many people couldn't say $10/month, let along $100 or $200. The premise though, is that even small savings, over time, add up. That said, yes, we need to seriously rethink our societal structure in terms of those in poverty.
And I hear Norway is lovely, but haven't been myself :)