this post was submitted on 13 Oct 2024
164 points (95.1% liked)
Asklemmy
43757 readers
2316 users here now
A loosely moderated place to ask open-ended questions
Search asklemmy π
If your post meets the following criteria, it's welcome here!
- Open-ended question
- Not offensive: at this point, we do not have the bandwidth to moderate overtly political discussions. Assume best intent and be excellent to each other.
- Not regarding using or support for Lemmy: context, see the list of support communities and tools for finding communities below
- Not ad nauseam inducing: please make sure it is a question that would be new to most members
- An actual topic of discussion
Looking for support?
Looking for a community?
- Lemmyverse: community search
- sub.rehab: maps old subreddits to fediverse options, marks official as such
- !lemmy411@lemmy.ca: a community for finding communities
~Icon~ ~by~ ~@Double_A@discuss.tchncs.de~
founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
So if the investment is for inflation, what are you going to survive from?
Historically, investing in a broad-market index fund has seen 8-12% annual returns. Average inflation in the US has been around 2-3%. Subtract another 3-4% for taxes, and you're still making at least 3%.
Anyways, the point is more about the fact how powerful saving & compounding is. Save early in life, and try to not inflate your lifestyle too much, and then you can technically reach financial independence.
If you can set aside 50 % of your money, you are already independent.
No, independent would mean you could cease that source of income and maintain your lifestyle. If you save 50% of your first paycheck and then quit I doubt that would be the case.
Being able to set that much aside would definitely make one wealthy (or live a very austere lifestyle) and fast track them toward independence, but itβs not an automatic qualifier.