this post was submitted on 04 Sep 2023
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In a lot of places if you own any land you are a millionaire, it's coming to the point that if you own a condo you are a millionaire.
What places? I’d hesitate to say “a lot” unless you consider just largely urban areas
So? Anybody who works their entire life and can save a few hundred bucks per month can be a milliionaire. You make it sound like those working people are you enemies.
It's true that "few hundred bucks" is enough to reach one million. But it is not for anybody. Let's take 999 bucks, which is the maximum of "few hundred."
If you were to save 999 bucks and didn't consider any interest or investments, it would take you approximately 84 years to accumulate one million dollars.
However, it's important to consider interest when planning for financial growth. Let's assume an interest rate of 2%. Even with this interest, it would still take around 49 years to reach one million, and you'd also need to account for the impact of inflation, which can erode the value of your money over time.
To achieve your financial goals more efficiently, you might need a higher interest rate or explore investment opportunities where your money can work for you, such as becoming a landlord...
Not sure what you're trying to say with this comment, except to elaborate on "can be a millionaire"?
"Can be" does not imply it's happening for everybody, are you asking me to confirm what I already said?
A few hundred per month. Let's do some math. Let's say you work and earn some form of income for 35 years, or 420 months. If you save 500 every month, you'll have a grand total of 210.000. That's 790k off of a million. Even at 1k per month, you're still less than halfway into being a millionaire.
You need to have a consistent salary of over 2.380/month (28.5k/year) to accrue a total of 1 million during those 35 years. So, supposing you earn 5k a month (60k/year), and can put half of that into savings, yes, you can "become a millionaire" by the time you're retiring.
Your comment shows exactly why not many become millionaires, because many people don't know how to invest.
Please explain how to turn $210k into $1m with interest alone. I'll even be generous and say you can take an additional 35 years of time to grow said interest.
Getsmarteraboutmoney.ca - go to their compound interest calculator. If you have 210k and put it into VEQT on questrade and set up a DRIP, in 35 years you'll have something like $3 million
Can you link to the actual calculator you're using for that? That page you linked is just their homepage. I've never seen a calculator that accounts for a DRIP.
It's just a compound interest calculator https://www.getsmarteraboutmoney.ca/calculators/compound-interest-calculator/
Use this one to calculate the value with inflation (average historically is 3.25% over the last century) https://www.wealthmeta.com/calculator/compound-interest-calculator
I've got 70 years? At 500 per month and 4% interest that's 2.3 million, with a contribution of 0.42 million. https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator If you start with 210k and never input anything else you'll even end up with more.
I know it sounds like magic, but it's just simple math.
No, you have 35 years to earn interest, because the first 35 years was spent saving the principal, remember? And remember how I said with interest alone? So no more $500/month contributions either.
So with that calculator, $210k at 4% interest for 35 years puts you at $849,611.66 with monthly compounding.
So not a million.
If you spend 35 years to accumulate money and never earn interest on it, yeah, if somebody is that stupid, your comment is correct. That's nothing I ever claimed though, I assume people who save aren't total dunces.
Your comment what so intellectual and full of information I was about to save up 10 million+ dollars and own a cheap 3 story apartment complex. I now drain the legal maximum amount of money out of my tenants. Thanks! I can now buy that 2 million dollar house I was eyeing
Ah yes, tell me more about how everyone has an extra 2.500 lying around every month which they don't need to spend at all, which they could just leave in a savings account and never ever have to deal with unexpected, unpleasant, expensive surprises.
Yes, 2500 are not a few hundred, nobody ever said that, you're just stating truisms while ignoring the context. You might want to read about what compound interest is.
And you might want to read about cost of living
I was writing about people who earn enough to save, just read my comments.
Literal copy-paste of your first post. The math in my first reply showed you were wrong, that "saving a few hundred" wasn't enough. Your take, somehow, was, I quote:
I have literally no idea how "500 per month for 35 years will only get you 210k" and "You need ~2500 per month every month for 35 years to earn a million" could ever mean "people don't know how to invest, that's why they don't become millionaires".
My reply was a snarky "Ah yes, tell me more about how everyone has an extra 2.500 lying around every month". Which you simply dodged because I "ignored the context" and because interest rates exist - they still won't make less than 250k into 1 million if you start from zero. Also, allow me to remind you the context that you set up:
Now:
At no point in any of your other replies, to me or other posters, you ever mentioned "people who earn enough" in a direct or indirect manner. The only time you ever pointed to any group was "anybody who works their entire life".
You can't even do basic math, https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator, but thanks for playing.
You can only get 1m or more under SPECIFIC situations, one of them being: IF interest rates keep a mean of 7.5% per year for the whole 35 years AND the compound happens quarterly.
Using the current USA fed rates as an example, of ~5.33%, you can "get" a million IF: the compound is calculated daily AND there's a 2.3 variance upwards in interest rates, making it go as high as ~7.4%. Obviously, that happening later on is much more profitable than early on, when you have much less money to get the compounds on. If, however, something like the early 2010s happens again, where interest rates were below 1% for roughly 6 years straight, you won't get to the million mark.
The fact that you never, at any point, did your part to actually try and show how, why and where my math "was wrong" shows that you're acting on bad faith. You just say "you're wrong" without giving counterproof. You fail to point how I'm "wrong", you just point to a site and say it. Under specific conditions, yes, I am "wrong", but under more likely conditions, you're wrong. Unlike you, I'm also pointing out the where and how: most situations where interest, especially later on, is below 7%.
I'm so glad you finally made a minimal effort to understand what I wrote! Congrats!
Ironic that I put more effort than you did in any of your replies
All you ever said what not everybody can do what I said some can do. I already knew that.
And you never showed why-how-where I was wrong, you just said it and called it a day. The situation where you are right is so unlikely that assuming you're wrong makes more sense than assuming I was wrong
Yeah I'm going to slave a large part of my entire life so I can own a house, so I can then rent it it in 50+ years. I'm sure by the time you save a million dollars the houses will be worth 3 million. They are already pushing 1.5 million in major cities.
I'd rather slave to own a house than to survive, but I don't because I'm self employed and work for myself. Each their own. However, it's good that you're aware of inflation, maybe you can use the fruits of your slavery to do something against it.
Yes because everyone wants to finally own a house when they pushing their late 60's that was always the dream. Okay cool story it's funny how you manage to twist everything everyone says but actually contribute almost nothing intellectually to the conversation. You would think someone so knowledgeable and moral like you would share their strats instead of being dismissive and ant intellectual. But hey maybe you have inherited wealth and your "job" is checking in on your building managers once a week. Each their own.
Lol, you're the one twisting everything I say. I say "people can do X" you answer with "I don't wanna do X". You don't have to do what other people can do, I'm not suggesting you do what others can do. I get it, you sound angry and bitter, probably because you see no perspective for yourself. As somebody who has been sober for more than six years I've seen a lot of people who feel attacked when simply shown that different lives exist. I feel you.
No you don't say people can do X you make passive aggressive remarks on how people don't know how to invest (you never really give an intelligent response beyond this). More passive remark, I don't even know what "no perspective for yourself" means is that supposed to be no future but you realized it was too aggressive even for you so you changed it and now it makes no sense. I have no idea what your sober comment is in the context of. I don't feel you, you never say anything of substance and feel you can just deflect with passive aggressive insults.
You obviously don't read what I write. Compound interest, go look it up.
I think this is the most privileged comment I've read since I got to Lemmy. Congratulations on being incredibly sheltered and out of touch. /s
Lol, knowing what some people can do is privilege? That's some khmer rouge level ideology, you're delusional. Also I've lived long enough in abject poverty that I think you should fuck off.