Everything Actually Costs 10x More


This one’s a quickie.

If you’re reading this, I’m gonna assume you’re around 30. You’re here because you care about Money and Retirement, but you’re also reading this because you haven’t figured it all out yet. You’re not a Millionaire yet. That’s okay. Neither am I… but I can help you get there more effectively. All you need to remember is the title of this post. Here’s why.

Assuming you’re 30, you’ve got 35 years left before a standard retirement age of 65. Every $1 you put into an investment now, generating 7% interest annually, will turn into – wait for it – $10.68 BY 65! Do you know what that means?!? EVERY $10,000 YOU’RE ABLE TO PUT AWAY NOW IS WORTH $106,765.81 BY RETIREMENT!

Before you all jump on me saying 7% annually is unrealistic, I’m obviously talking about index funds that sometimes go up, and sometimes go down. The idea is that 7% is the average growth over a number of years, and you’re not gonna be dumb enough to cash out your index funds entirely right after a crash like 2008. When you decide to cash out, you’ll already be swimming in hundreds of thousands, so you can wait a little bit for the market to recover. You only need to withdraw enough to live on anyway, which should only be about $100/day for maximum happiness! Even that’s kind of extravagant.

For me personally, the US index fund I invested in has gone up 8.2% in the past 10 years. My MER is oddly high (and I’m gonna look into that), but even after factoring that in, my projection for 10-year growth is still about 7%. I’m not just telling you what to do! I’m also doing it!

Just remember: Spending $1 today is costing you $10 in the future. Save it, and invest it. And if you suddenly come across a windfall of $100,000, put it aside so you can become a Millionaire through no effort at all.

$1 + Time = $10.

Simple, right? Even a millennial like you can do it.


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