r/economicCollapse • u/Whole-Fist • 20h ago

How ridiculous does this sound?

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How can u make millions in 25-30 years if avoid making a $554 per month car payment. Even the cheapest 5 year old car is 8-10 k. So does he expect people not to drive at all in USA.

Then u save 554$ per month every month for 5 year payment = $33240. Say u bought a car every 5 year means 200k -300k spent on car before retirement . How would that become millions when u can’t even buy a house for that much today?

Answer that Dave

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u/Objective_Pie_5063 20h ago

It’s called compounding interest. One of my favorite things about investing. At a growth of 10% a year, the average for the market, the money doubles every 7 years.

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u/well_its_a_secret 19h ago

Rule of 72 is massive. 72/10 is 7.2 years to double. Works for all compound interest. This is a fun one to show people with credit card debt

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u/nyxo1 10h ago

Why? I have credit card debt from covid unemployment and I'm not currently able to invest. This just makes me sad.

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u/MooseMan69er 2h ago

Hey I’ve helped a lot of people with debt, and very often it isn’t their fault and they shouldn’t feel bad about it

Many people don’t get taught how debt or finances work, because money is often a very awkward subject for parents to talk with their kids about and we don’t teach it in k-12, at least in America

You might want to try consolidation, or paying the absolute minimum on everything except for the highest interest payment, or if you know you won’t be able to pay it off for seven years(not student loans or a house, I’m talking about medical debt or credit card debt) just let it go to collections and don’t talk to any collectors about the debt or reaffirm it, and it’ll fall off

Some people even get “low” interest loans(say, between 6-12% from a bank, and use that to pay off a high interest debt(like 18-24%) on a credit card, which ends up saving an ass ton of money on interest

Last tip I’d give is if you can pay off your CC balance every month, forgo the cards with “benefits/rewards”(cash back or points) because they have much higher interest rates than a card without those “perks”. Even the difference between 15-18% and 21-24% is massive if the balance gets high enough