• elrik@lemmy.world
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    24 days ago

    But if you made just 3% interest on your money as you deposit $1,825,000 annually, over 532 years, you’d end up having $410 trillion dollars or more than 2,000 bezos.

      • iii@mander.xyz
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        24 days ago

        Same. There’s no gold standard, money is a social construct.

        I wonder if the people who think like this, also assume “if bezos had less money, I’d have more”.

    • skibidi@lemmy.world
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      24 days ago

      2000 Bezos or about 4x the GDP of the planet.

      People just need to invest and stop blaming others for being broke SMH.

      Invest one penny at 3% per year, who can’t afford one penny? You’ll have $68 billion in just one thousand years. Poverty is a choice.

    • foggianism@lemmy.world
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      24 days ago

      yeah but 1.8 mil 532 years ago would have been valued like billions today. so you still need to be a billionaire to become that rich

      • elrik@lemmy.world
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        24 days ago

        Not really with that amount of time. Suppose you put away $1,000 a year for 532 years, at 3% you still end up with $225 billion.

        The deposits are completely dwarfed by the compounding interest. If you only start with $1,000 and add nothing else but let that original $1,000 compound at 4% you’ll have over $1 trillion.

        • UnderpantsWeevil@lemmy.world
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          24 days ago

          Where are you getting 4% annual compound returns, though? That’s faster than the historical growth in global GDP over the equivalent time period.

          • elrik@lemmy.world
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            23 days ago

            Yes, it’s equally as unrealistic as leaving money idle for 532 yrs.

            The only point I was making was that multiplying $5,000 a day by so many years is a silly comparison as it ignores the dominating factors to building wealth.

            Billionaires shouldn’t exist but also they don’t exist because they stuff X dollars under their mattress every day.

      • bountygiver [any]@lemmy.ml
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        24 days ago

        you just need to have unlimited time, at 3% annual interest, it takes 77.89 years to 10x your money. it just happens that 532 years is 6.8 times 77.89 years, therefore you would just put a 1 million multiplier on your money anyways. And putting 1 million multiplier on 1 million dollars is enough to become a trillionaire anyways

        At 3% interest, you double your money every 23.4 years, how many 23.4 years do you have?

        • Rhaedas@fedia.io
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          24 days ago

          And in a position to be able to lose it. High interest are high because they are risky, so they have to pay well to attract investing. If you already have enough money to burn, you can put money into various high risk areas and win overall. If you only have enough to sink it into a single source, you could gain. Or not.

          • psud@aussie.zone
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            23 days ago

            Index funds are pretty incredibly safe. Pick one of the big US indexes and look at the graph since before the global financial crisis

          • iii@mander.xyz
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            24 days ago

            If you already have enough money to burn, you can put money into various high risk areas and win overall.

            That’s the angel investor strategy.

            There’s also lower risk index funds, that simply invest in the biggest N companies.

          • photonic_sorcerer@lemmy.dbzer0.com
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            24 days ago

            As long as you keep that money in index funds like MSCI World, S&P500 or DAX, you can wait out the bad times. Never sell, keep holding. Over decades this leads to large net profits.

      • Dudewitbow@lemmy.zip
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        24 days ago

        thats why investments are inportant for long term. the problem we face as a society is that the majority of people cant afford to make these investments, as they are living day to day with their paychecks.