If you can't make money while sleeping, you will keep working for the rest of your life. Warren buffett.I did invest in crypto but the truth is that only a small fraction of my portfolio is in it. I always preferred stocks and ETFs. I love the concept of crypto though and I wish more people would see its advantages instead of seeing it as a get-rich-quick scheme.
You can easily do the math. For instance, assume an income of $4,000/mo and only spending $1,000 a month.
That's $3,000 per month saved. In one year you have $36,000. Simply investing those $36,000 in the SP500 will give you a 7% return (historic rates and last 20 years as well).
Plug the numbers in Excel and you'll see that in 20 years you have almost $1,000,000.
And that's just with an income of $4,000. Add better paid work that can be done remotely and requires skills (like programming or design) and you can reach a million much more quickly, and then just let compound interest do its magic and you can sit and watch your money grow by itself.
Almost everyone I know who became rich from scratch (without inheritance or anything like that) did it this way. I even know someone who was a PE teacher in high school, and now he owns a huge hotel worth millions of dollars. How did he do it? Slowly over time, building the hotel from scratch, room by room, acquiring land as needed, looking for the best rates for construction work, doing construction work himself... It all paid off in the end and I'm sure he enjoyed the journey as well.
And I also know middle class people who are stuck there even though they earn much more than that PE teacher. Still working 10 hours a day and will continue doing so because they don't have the mindset. They own a bunch of cars and toys that they bought with money they didn't have and are still paying off, they spend hard every weekend, they're always in debt. It's their life, but they'll never be rich. It's mathematically impossible for them unless they win the lottery (which they also waste their money in btw).
I'm fully convinced that doing it slowly, with a plan, and controlling one's expenses is the best way to do it, and has a high chance of success (almost 100% I'd say if one sticks to the plan).
But, of course, I'm open to be proven wrong and be shown how making an extra million in the next 10 minutes is actually easier.
You nailed it my friend!
I always think that best advice is to buy low cost etf Like I have Voo with 0.03% expense and 7% inflation free income.
BTW what other etfs you are into?
