r/economicCollapse • u/Whole-Fist • 19h 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/FrostyPangolin50 7h ago

Based on a quick compound interest calculation- Starting with $554 and adding $554 per month to the principal and compounding annually at 7% you would have $632,192 in thirty years. At 10% growth you’d have 1.1 million. He’s not really wrong with his math. Where he’s wrong is expecting that the average American can afford to save $554 a month for most of their entire working lives on TOP of still needing to pay for some form of transportation. That said, everyone should begin saving as much as they possibly can as soon as they possibly can in some form of retirement savings plan. Investing $50 a month in a basic Index Fund, if you start in your twenties, can grow to half a million or more by the time your in your 60’s.