Just One Dollar a Day....

a reply to: Edumakated

I never thought I'd see the day that people would be arguing against personal responsibility.

originally posted by: Edumakated
Imagine if government just put $365.00 a year into an ETF for each person once they start working. Just have it taken out of a check and put into an ETF. Each person had a "lock box" with their account. They'd have the money at retirement and then even be able to pass it on to their kids at death unlike social security.

Think how simple it would be to implement something like this...

Government and simple are not words that go together well in the same sentence

originally posted by: Edumakated
Did you know that if you saved just one dollar per day, in 50 years you would almost have $700,000? Think about that.... most people could easily live off $700,000 in the bank at retirement. If at 18 years old, you started putting just $1 dollar a day away, you'd be sitting on almost $700k when you turn 68.

Financial illiteracy is the biggest issue facing our country. Most people are broke because they spend more than they make and do not prioritize investments/savings. It has nothing to do with income inequality, wealth redistribution, etc. It is lack of discipline and ignorance. I'd venture most people waste more than $1 dollar a day on bullsh*t. The biggest mistake people make is procrastinating. Every year you delay putting money away, cost you a ton.

A study was done with three options if someone were to save $1 dollar a day for up to 50 years.

1) Saving in a non-interest bearing account (typical checking account): $18,250 after 50 years
2) Money market or savings account earning about 1% interest: $23,646 after 50 years
3) An Exchange Traded Fund (ETF) tracking with the S&P 500: $698,450 after 50 years

How much you'd have if you saved $1 dollar a day

Amazing, huh? If you can put away more than $2/day you'd easily be a millionaire at retirement.

Tech is making it even easier. I have an Acorns account. You sign up and it links to your bank or credit card account. It rounds up every purchase you make to the next dollar and invests the spare change. For example, if you spend 85 cents on something. It will round it up to $1.00 and take the 15 cents and invest it. It does this on every purchase you make.

Over the course of a year, I have saved almost $3500 just from doing this.

The next time you hear someone whining about how they can't save, just call BS. There is no reason anyone should be entering retirement broke.

Just $1 a day...

Republicans should be pushing for comprehensive financial education. It would stop a lot of the ignorance coming from the left.

This is great advice! Lots of people don't know the power of the money they have, they never got educated about it.

I have seen tons of people desperately spending whatever money they've earned, as if they were afraid it will go away in other things they will not be able to enjoy in a couple days, so they spending it before they 'lose it'. So far, I have not been able to explain to them that if you just don't spend it yourself, it will still be there next morning


As a side note.. That last part where you made it political... :S