Re:Don't Waste the Good Days
by cercatrova on Saturday January 01, 2022 @04:00AM
(#29756788)
By compounding interest they don't mean bank interest rates, they mean that the US economy averages about 7% real gains every year when taking historical data back from the 1800s to now. Check out some financial independence calculators [0], you are pretty likely to retire early as long as you invest your money into the US stock market.
You are lucky if you can take advantage of compounding interest. A dollar you spend on food in your 20s is just as valuable as a dollar you spend on food in your 60s.
Also, interest rates are lower than inflation in many cases.
I have a good job and a bit of money invested (about a new cars worth maybe) but there is no chance that I can become "wealthy" or retire early just by saving.