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Saving 10% on a median income adds up to roughly three thousand dollars saved, a year. Depending on the amount of risk you're willing to accept, you may find yo
by disintegore 7y ago
Saving 10% on a median income adds up to roughly three thousand dollars saved, a year. Depending on the amount of risk you're willing to accept, you may find yourself making between ~2 to 10 grand over a 10 year period from interests alone. I think those numbers are reasonable (and that saving in general is absolutely worth it), but I don't think they're significant enough to grant you upwards mobility.
Even furnishing a savings account is a privilege many people cannot afford, and no amount of frugality will help them. Only access to higher quality jobs.
If you ask me, Jay-Z gambled on the entertainment industry and won. His gambling chips were talent and hard work.
- anewguy9000 7y ago2-10 grand over 10 years wont even cover inflation. so you're actually poorer.
- tonyedgecombe 7y agoYou would expect equities to outstrip inflation in most environments.
- disintegore 7y agoI suppose you're that much less poorer. In any case, you have something like 30 grands on hand, which you wouldn't have otherwise. That's cash down on a house.
- anewguy9000 7y agonot in 10 years its not (maybe somewhere on earth it is?)
- mcguire 7y agoAccording to my handy amortization calculator, $3000/year = 250/mo starting from 0, 10 years = 120 months, 3%/year (S&P500, after taxes and inflation), gives $34,935.36. 20 years gives $82,075.50.