• foggianism@lemmy.world
    link
    fedilink
    arrow-up
    0
    ·
    11 days ago

    yeah but 1.8 mil 532 years ago would have been valued like billions today. so you still need to be a billionaire to become that rich

    • elrik@lemmy.world
      link
      fedilink
      English
      arrow-up
      0
      ·
      11 days ago

      Not really with that amount of time. Suppose you put away $1,000 a year for 532 years, at 3% you still end up with $225 billion.

      The deposits are completely dwarfed by the compounding interest. If you only start with $1,000 and add nothing else but let that original $1,000 compound at 4% you’ll have over $1 trillion.

      • UnderpantsWeevil@lemmy.world
        link
        fedilink
        English
        arrow-up
        0
        ·
        11 days ago

        Where are you getting 4% annual compound returns, though? That’s faster than the historical growth in global GDP over the equivalent time period.

        • elrik@lemmy.world
          link
          fedilink
          English
          arrow-up
          0
          ·
          10 days ago

          Yes, it’s equally as unrealistic as leaving money idle for 532 yrs.

          The only point I was making was that multiplying $5,000 a day by so many years is a silly comparison as it ignores the dominating factors to building wealth.

          Billionaires shouldn’t exist but also they don’t exist because they stuff X dollars under their mattress every day.