Become a millionaire. It’s easier than you think

cguy

Executive Member
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Jan 2, 2013
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5,735
You are completely missing the point of both my post and the OP. It's not about getting the best possible returns. It's about convincing non-savers that it's worth saving. Overcomplicating things with inflation and tax calculations is not going to help. Besides, even at 10% pa, it will take 3-4 years to exceed the tax-free alloance on interest (R23k odd) - enough time for someone to get a feel for the growth and realise it's worth it, even with modest savings every month.
You and the op are not painting a picture of "it's worth saving", you are both painting a "get rich" picture: "Become a millionaire, it's easier than you think", and "the bank is throwing money at you". This is an outright lie. All that saving allows you to do is retain wealth - by definition.

And speaking of which, I've moddelled those factors, with the SA figures. You still come out ahead of inflation ...
You don't, what you consider "ahead" is currency risk.

... and most definitely ahead of not saving at all.
Does this really even need to be said?
 

SauRoNZA

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37,108
If his point is that if you choose to keep more then you get to keep more, then sure. I would kinda think that would be a given though.

There is no fundamental difference between saving and investing. These are just forms of keeping your wealth that have varying risk and reward trade-offs.
Ag I think it’s targeted at people who aren’t in the habit and illustrating to them that the sacrifice, discipline and consistency of saving/investing is actually more important than the specific returns.

You worry about the returns once you’ve built the habit.

Many people look at the returns and then go “okay...I’ll do it later” but then never get around to it so when a measly 10% of something invested would be better than nothing at all with a 40% pipe dream.
 

cguy

Executive Member
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Jan 2, 2013
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Ag I think it’s targeted at people who aren’t in the habit and illustrating to them that the sacrifice, discipline and consistency of saving/investing is actually more important than the specific returns.

You worry about the returns once you’ve built the habit.

Many people look at the returns and then go “okay...I’ll do it later” but then never get around to it so when a measly 10% of something invested would be better than nothing at all with a 40% pipe dream.
I agree with you. I do think that a more targeted article on the benefits of saving, consequences of not saving, and retaining wealth, would be far more easily digested without the laser focus on the magical money magnifier of compound interest. Right now, it sounds too good to be true, because it isn’t true.
 

koffiejunkie

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9,199
You and the op are not painting a picture of "it's worth saving", you are both painting a "get rich" picture: "Become a millionaire, it's easier than you think"
"millionaire" just means you have a million, which you and I both agree isn't "rich" by any definition.

and "the bank is throwing money at you". This is an outright lie. All that saving allows you to do is retain wealth - by definition.
Here's a list of literary devices. See if you can figure out which one I was using.

I know what I wrote, and what the purpose of my post was. The rest is in your head.


Ag I think it’s targeted at people who aren’t in the habit and illustrating to them that the sacrifice, discipline and consistency of saving/investing is actually more important than the specific returns.

You worry about the returns once you’ve built the habit.

Many people look at the returns and then go “okay...I’ll do it later” but then never get around to it so when a measly 10% of something invested would be better than nothing at all with a 40% pipe dream.
Thanks, that's exactly it. Like almost everyone I know who's 2-3 years away from retirement and is suddenly asking me how to invest in the stock market/bitcoin/whatever because they just realised their pensions won't cut it and they don't know how they're going to fund their retirement.
 

SauRoNZA

Honorary Master
Joined
Jul 6, 2010
Messages
37,108
Thanks, that's exactly it. Like almost everyone I know who's 2-3 years away from retirement and is suddenly asking me how to invest in the stock market/bitcoin/whatever because they just realised their pensions won't cut it and they don't know how they're going to fund their retirement.
Yeh it’s pretty sad state of affairs.

My folks are now at retirement age and while they are fine they are surrounded by many friends who have done the “cash out my pension for this get rich quick scheme” kind of thing way too many times and are now up **** creek.
 

cguy

Executive Member
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Jan 2, 2013
Messages
5,735
"millionaire" just means you have a million, which you and I both agree isn't "rich" by any definition.
People don't write financial advice articles titled "Become a millionaire", with the intent to convey "not rich by any definition".

Here's a list of literary devices. See if you can figure out which one I was using.
Yup, "Fallacy" is on the list. I get that your intent wasn't deception, but the whole "wow compounding" part of your post is grossly misguided, for reasons you don't seem to understand.
 
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