Get rich slow with the miracle of compound interest. 816 upvotes | October 21, 2017 | by [deleted] ------------------------- TL;DR Invest and get rich. Imagine having a balance on your credit card that pays you interest. So the redpill isn't just about banging hotties and lifting. It's about making your life awesome and as a byproduct those women will want to be in it. Flashing money to attract a woman is definently a losing blue pill strategy but having a big pile in investments allows you to have freedom to accomplish more of your goals or survive tough times in the future. So what is compound interest and why should you care? It's the thing that turns 10k into 6.5 million in 200 years. Google Benjamin Franklin compound interest experiment. Ok we don't have 200 years but what we do have is our whole lives to invest and that's a LOT of time. I'm 30 and in just about 5 years I've acumulated 100k and of that about 25k is interest and dividends. Even if I dont contribute another dime, in 6 or 7 years it will double, assuming we don't have a crash. But if we do, you just keep on investing because it will come back. Think of it as stocks went on sale. As you get older your earnings should go up and if you continue to grow your saving/investing muscle you will have massive amounts of wealth. Download a compound interest calculator and play with your numbers you'll be amazed. So you're probably wondering where do I invest, sounds complicated. It's not at all. I would advise a Roth ira to start. 5500 is the max per year. It's not tax deductible but you have the flexibility to withdraw all of your contributions at any time without penalty if you need to use some of your built up reserves. You also have the option of using up to 10k in earnings for a downpayment on your first house when you get to that step penalty free. Obviously if you have a 401k or roth 401k that matches at work use that too. Not as liquid but adds more options if you want to take the penalty and pay the taxes. Once you max out the roth and 401k you might be able to do an HSA, next just in a regular individual account you would pay long term capital gains tax on any earnings there though. Ok so if I get a Roth what do I invest in? Well that's simple the entire stock market. Index funds make it simple and they are extremely cheap fee wise(expense ratio). VTI, SPY, etc. You might think but I want to make more than the market why not an actively traded fund? Their fees and inconsistent returns loses in the long run. Buffet proved it. https://www.cnbc.com/2017/09/18/warren-buffett-won-2-million-from-a-bet-that-he-made-ten-years-ago.html It's not hard but it's not easy. You have to purposefully live below your means and not buy all the fancy new toys you think you want. Now looking at this pile of cash I can't even remember what all those little self sacrifices were. I'm just thinking of how I can save/earn more so it grows to be a million by the time I'm in my mid 40s. You can do it too, start young your future self will thank you. My brother told me about the roth when I was in highschool and it took me 10 years to start. I wish I would have started sooner instead of buying that motorcycle or the 4 spring break trips I didn't really need to go on. Let me ask you, when is the best time to plant a tree? 10 years ago but the 2nd best time is today. Get started open that roth and watch your money work for you. Anyway, not your traditional redpill lesson but hope it helps inspire someone. Edit: 19 year old invests 30k put $100 in per month auto draft, forgot about it now 42 and its worth 1.3 million. http://www.youtube.com/watch?v=yR1uLJ2qrqs&t=11m30s ------------------------- Archived from https://theredarchive.com/post/46671