THE AUTOMATIC MILLIONAIRE SUMMARY (BY DAVID BACH)
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- Опубліковано 30 вер 2022
- Here's a link to Elvin's LITTLE BIT BETTER: / @littlebitbetter7
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Worked for me!!! No cell phone and no cable tv! And I am WAY OVER $1 million today.
Thank you for sharing your thoughtful content…for putting it out there with the passion that many of us need and strive for. I'm starting to listen to you almost every morning. Your voice and words feels real and genuine.
I am grateful to have your channel as a source for having a better relationship with myself and the world around me.
Those books always sound very rational, but have little practical value. While the numbers and facts are true, the biggest problem is that by the time you have those money, you will be 65.
With the current lifestyle many people have, they wont be very healty at that time and let alone enjoying, they will probably have to spend parts of this wealth for health.
Also being a millionaire in the literal sense of the word is not what people aim for - they want the lavish lifestyle, buying thier dream car or dream home - in the reality those 1-2 millions will be only invested while supplying 5% per year (around100k) which can be used to have a normal life after old age. While this may sound appealing to someone who lives now on less than that it is not the same... because no bank will loan you anything at that age, meaning you will have to save to get those dreamt items.
Saving 5$ per day sounds very practical and easy to do and has the benefit of 'low entry' - people can join very easily. However, that doesnt really help a lot - it is very rare for people to persist on something for so long when the results will be visible in the later stages.
Which leads to the cruel reality - you have to change your habits a lot, to leave 'under your means' in order to save and invest. Only then can you achieve satisfying results sooner or even bigger ones later.
If you really want results sooner (not 10-15 years in the future, which already is very soon) some riskier and more active investments must be taken - like starting a business.
Here are some numbers - it will take you 18 years investing half of your salary in order to get the same income you get now. I have used the 8% annualized return of the S&P 500 adjusted for inflation for this calculation.
That means that if you are 27, you can retire on 45, while having double the standart of living you have had before.
The best way for someone to become rich is to increase his income and then invest the difference.
If not, you will just have some comfortable last years.
What I hate is that such books come out again and again, selling the same crap like 'everyone can be a millionaire` while conveniently skipping the stuff above.
Tldr
The funny part is that many people build their wealth and income selling you the idea that you can be a millionaire if you save and invest. Or starting a business. But, what if you don't want to be a business owner? You're fuc**d
It’s a practical advise. Though success rate of doing a business is less than 10% and failure is 90% but that 90% is because we never attempt again. One can increase income by learning fast and failing fast and then trying again. But how many universities teach this to our kids. As a result we are limiting the amount of SKILLED people to start their business. The only good reason to live a life full of flavours is to be successful at times and then fail too. Since we are not doing it. Wealth is only concentrated in the hands of few. Why this video can not be, but hat if you invested 5$ a day in your business rather than Simone else’s business. Why give your money to someone else and keep working your ass off again for someone else. This is really creating a wealth concentration effect while forcing people to continue work non stop.
Never thought Luffy would know so much about finance
@@kristijancavic Right back at you, Ken.
My latte is the UA-cam subscription to watch these videos without ads
10% return is a bit high fetched. AVG annual return for past 100 years has been around 6-7%, which more then halves the amount you get by retirement.
Still good as the video said. But Ya right.
Yup. It's a meagre 4% here
That's a 'yeah, but...' moment
@@mateuszfejfer1822 It is, I'm still doing it (investing) tho, but the facts have to be laid out straight :P
Over the past 30 years, the S&P 500 index has delivered a compound average annual growth rate of 10.7% per year.
I don't agree about Billy, Susan, and Kim..
It is said that Billy invested for only 5 years. But since Billy never really took his money out and just let it grow through the decades, then that is still investing. Billy actually invested the longest--50 years.. so that's why he won.
Just because he wasn't doing any activity, he was considered to have invested only 5 years. The act of leaving the money to grow on its own is still investing.
Charlie Munger said:
"Sometimes the best thing to do is to do nothing."
That "nothing" is not actually nothing. It is still part of investing.
Yes it was a bit misleading.
true...he was resisting all these years the urge to take out that money and spend 😂😂
@@007_Sun_Tzu mAh men Billy got some iron will.
That was the point of that presentations part ;) It's time in the investment that counts the most, not mony you invest.
Yeah and Billy got the means to put away 3000 dollars a year at the age of 15. So he is probably well off already in the first place.
I love the Swedish Investor, I have been your subscriber for like a year now, but I am shocked by the calculation made. I sat down and did some math and realized there is a lot not right at timestamp @ 9:04. There is some math not right, But in overall, I loved the video and the content. It's Beautiful.
With high inflation the book needs to be renamed “The automatic Multi Millionaire “
Good one John L
'yeah but...'
This is absolutely true. The downside is that saving money sucks!!!
not true. Once you have $500,000 .. you will find you don't have to save anymore money. It will just double by itself every 9 years.
hey, I never drink latte when I'm at work and I already have a decent amount of money on my retiring plan. This works! 👍🏻
but honestly: my parents were very focused on saving money, they achieved their financial goals. I live the same way, this is my habit and I am comfortable with it ☺️
I really appreciate all these money knowledges, we can strengthen our foundation for our sons and daughters, they will have a better life for sure.
Love your content!! Great stuff 💰💰💰
Thanks for sharing
That is exactly the point I make to people. They say they cannot afford to invest because all their money is taken. I say look at what you are spending and I bet i can find ways of making sure you can. People seem to spend for convienience as much as anything else. Why make a coffee when you can buy one, or indeed not move your bank accounts to places that pay more interst (yes it's becoming a thing again), or shop around for things.
Just a bit of effort can help you loads financially, enough at least to invest and make more money.
And don't get me started on the 'have it now' culture !
Plis, could I know which software do you use for making the audio/speech?
Wow it’s been awhile great to see you back ❤
I think 10% promise is to much for a Latte-Lazy person since the person probably don’t want to invest hours to Analyse stocks and businesses.
I think a 5 % return annually form an ETF suits the Latte-Theorie better.
S&P500 is lazy investing yet it's still between 8-12% annually on average over a decade
@@Financialguide2023 i guess you didnt got my point.
after cost and tax its more like 5-6
@@lennard3204 doesn't get taxed until you cash out and if you use an ISA in the UK its tax free up to 20k per year anyways which is more than the average household saves in a year
@@Financialguide2023 thats great, with 5 percent yield i actually thought about an msci world etf rather an sp500
Even 3% inflation-adjusted(real) return is very optimistis, to be honest.
Average return is 0%, and you have to consider this as your expected return.
“Business has only two functions - marketing and innovation.” - Peter Drucker
What if your investment go bad...let be Frank the market goes bad at times.....what investment do you recommend!!!!!!!
After making bad crypto investments over the last two years, I started to really educate myself, I finally learned to stop chasing pumps, I started to DCA with money I can (sort of) afford to lose on a few good projects and on two wild cards..and I found out managing risks adequately ensures trading success.
Grateful to the guidance and needed help I got as well from more experienced traders.
There's way too many information out there, its really complicated atimes to know which strategy to stick to that will just be suitable for you.
I've been researching on the best approach to begin with.
Would appreciate any help offered.
You can get in touch with, Emilia E Arias.
You can find her on the net.
Been trying to learn about trading to secure extra income earnings and this comment came in handy.
Thanks 😊
I just searched and found her web blog and I've reached out hoping to get a response soon.
The idea is good but everyone forgets that 1 million $ adjusted for inflation in 50 years won't be anything close to 1 million $ now.
love your videos, what software did you use to make these amazing animated videos? Wanna use it with my school project lol
Bro, Videoscribe
does anyone know with what tool this video is maked ( to make the animations?)
Muito bem. Ótimo vídeo.
I was waiting so much for new videos. Just re-do the old one with new information and animation.
Thank you for your videos! Helps me stay grounded and focused.
Wow 👌
Hey You know "Un poco Mejor" I'm a great fan of you both
Even assuming the 10% return is doable, how much of that would disappear from capital gains taxes if in retirement jimmy splurges on that solid gold rubiks cube that he always wanted? I think around 300-400k in canada?
in addition this to this theory/view. i'd suggest reading richest man of babylon.
if you can make 10% annually for the next 50 years, please let me know how to invest with you!
I think this is far too high. 5% is much more realistic...
What software do you use to make these videos?
My gift to my children will be having them max out their Roth and 401k the moment they begin working. I will them reimburse them the same amount until they earn a large enough salary where I do not need to assist them. Also, when I die, they can get my 401k, Roth, and rentals.
The cycle of generational wealth continues, and hopefully they will do the same for their kids.
Would it make a diference of a lump sum in the begining of those 5 years, or DCA the 5 dollar a day in the 5 year period ??
Yes, you would have more Money in the end if you lump sum since more of your Money has more time to grow
Impossible to tell tbh. If that moment was last summer or mid 2007, you would probably be much better of DCA’ing it in (though probably like once a month, because in doing it daily fees might eat you alive). On the other hand if you were in early 2003 or late 2009 you would be better off just tossing it in at once.
In the current situation I expect DCA to perform better, think there’s certainly more downside from here (with pension funds just starting to be forced to sell assets for liquidity)
Almost always, it's better investing at the beginning, so you have more time to compound your entire money. But, if you invest just before a crysis, then the DCA strategy would result better. For example, if you invested whatever amount of money (lets say 60k) in 1/1/08 you had 65k in 1/1/13, a MISERABLE 1.73% annual return. Instead, you do the DCA for 1k every month = 60k in total, you had 77k in 1/1/13, a 10.06% annual return. Similar if you do it in 1/1/01 to 1/1/06 (55k vs 70k, you had lose money!). But those are particulary cases, in other years when market is bull, you had more return if you invest ah the beginning (example: 1/1/09 to 1/1/14, 129k vs 87k).
When your 65 you already miss out all the goodness
This is practical advice for middle class people and students who spend alot of money, however in the UK context atm with the cost of living crisis and the sky high energy bills there are alot of people who have no spending cuts they can make and who are still struggling to survive.
7:39 I believe the math works out with 10% annual return. With 9% annual return Susann is accumulating more money. With 8% annual return Kim is winning easily. 10% is a really high ask for annual return, even with the best ETFs. Especially when you actually want/need to cash-out at 65 but the market is currently down and might take 5 more years to normalize.
That's what I thought when she said 10% hahaha the person must be the genius of investments to make a 10% per year. But still it's a nice idea to explore what you can do with daily little spending habits.
10% can be achieved by buying a S&P500 index fund. That's been around about the average return over the long run. Now if you only bought index funds during recessions and periods under the trend line average, you're now looking at 20% a year. It's not hard at all.
A quote from investopedia on the long-run growth of the S&P500:
"There have been many ups and downs in its century of existence, but generally, the index has produced returns over the long run. Since its inception, it has returned 11.82%. You can invest in the S&P 500 using index funds and exchange-traded funds that mimic the index and not pay as much as you would for each stock."
@@danmchardy6424 don't take the past as a projection of the future so easily. The S&P was performing amazingly because we had a century of the USA as the center of the world, unfortunately we don't have any guarantee that it will keep going
Thanks all of you for your math...for me the message is clear, invest as soon as you can, if possible before you are born, invest automatically in good companies when margin of safety and forget 😀 open an ugma account for your kids and transfer automatically....
Its not about how much you make, its about how much you keep.
People really fail to manually invest their money? I've been investing for 3 years now and manually deposit money into my brokerage account every month without fail. I like having to do it myself as I can see my account grow every month with each deposit.
I wish I was smart like Billy 👀
Its been a while - glad to see you're still putting out content
The is a serious question, I've been really depressed. I have been unable to find the answer. I invested in a property I live at, at 34yo only to find it is currently a liability and money pit. I may even lose my home. I am autistic and don't work, I am 56, in order for me to keep this modest little home, which I love, I need to make money quick, I have no skills, as my autism (undiagnosed at the time) meant I had to finish work. I looked at "Rich Dad Poor Dad" but am unsure, "too good to be true" comes to mind, so I am researching, but I fear time is running out and all I want to do is to keep my home.
How did you calculate the numbers on 5:17 ? 5x365 +5x365x0.1 is 2007.5
It's probably assuming the $5 was invested into S&P500 and the price fluctuated? There are online calculators you can use that have historical prices for comparison.
Nice to see a new video from you, Swedish Investor :)
10% for 30 years is being fucking optimistic
I would rather listen to Swedish Investor next time!
Let the lady run her own channel
1. This video contradicted one of urs....
Remember in one of videos u said u can't be rich saving $3 a day on ☕ coffee.....
2. This video is stopping a person not have a cup of coffee a day and also making rusty ur ability or talent to explore new ways of passive income or increase ur income just cutting cost on ur energy of body.......
Hey Brother, your works are truly amazing. It helps us get the key concepts of very important books without spending hours. Please make more videos on the know-hows of investing.
yes you mention the 2 out of 6 important automatic millionaire steps.
Hai mam your video wonderful
Much, much, much rather have Kim's money than Billy's. 5% return is much more realistic for a well-diversified portfolio that has at least a small percentage of bonds, that isn't all-in on the S&P since that in itself is a major risk factor. Kim ends up with more than twice what Billy does. Of course, if you take Kim's saving habits and apply it to Billy's timeline..... heyyyyyyyyyy!
After long time
why you don't make a video about how 5$ turn to 1-2 millions, show us the how to calcuate
Greets from Sweden🇸🇪
10% yearly return for 40 years is better than the best investors in history
Berkshire got a 20% over the last 60 years. And in this century, a 10%. All you gotta do is investing in that company.
good luck getting the 10%.
I'm destined to beat the index consistently for decades.
ETFs! Simple... 😌
7 or 8 % seems more accurate
@@jeanvaljean4876 or 0% inflation adjusted.
For anybody who don't believe and start show statistics, I have even better statistics from emerging markets, where currency devalues faster than sound.
Fortunes cannot grow, someone has to increase them.
"Even if you get 5 percent, that's not bad" it's better than the Zero Percent you earn from spending $$ on lattes.
And counting on inflation, all the money you save by retirement will buy you one coffee cup, no milk.
Invest it in a coffee company then, problem solved
Learned something. What to call broke friends that don’t try. “Yeah butts”
I liked that part from Elvin too 😁
"10% yearly return" ..... haha , where can you get this sort that produce consistently? Even many paid professional fund managers can't do that on yearly basis. 5-6% per year might be more realistic. Really good money managers who can do this usually close their funds from additional outside money after awhile.
Etf on SP500 maybe?
@@pabloorue777 yup
👍👍👍
🐐
i wonder where can you get a 10% interest???
DCA in ETF that replies Nasdaq for example, and you can find this return, even more.
Who will have more money when they retire, the kid who invested from age 15 to 19 or the person invested from age 27 to 65? The CORRECT answer is the 27 year old because Billy will need that $20K for stupid things when he is 19, like a car or a boys trip to Vegas. Meanwhile, the 27 y.o. is serious about investing and won't dip into that account to buy dumb sht.
What counts as paying yourself?
Automatic investments is the easiest way to become wealthy in the long term.
*Meanwhile 18 years old on robinhood*: yeah right
Why aren't you uploading videos as often as you used to be??
Who was the one person who didn't fail please tell me
Everything is abou investing, but no-o e talk about where and how...which are safe in Europe and whuch are safe in USA...
Thanks. I read this book a long time back. It worked for me. Nice video. Hope it helps someone achieve their freedom.
Are you rich now?
@@eduardcueloakimista4383 I am completely ndependent. Don't have to work for anyone and not care about anyone's feelings...the Americans call it FU Money.
How practically did u do it? Just some small examples
Now keep in mind billy also needed to reach in his pocket and pay taxes on those divideds the longest...10% in stocks is reinvest divideds and not including taxes
Latte factor = I'll still have my latte and save simultaneously.
Summarize investing books and because weneed knowledge on stock market that'swhy I subscribe your channel but from last 2-3 videos I don't understand what are you doing?
Each time I see that kind of videos I feel like a monster cause I spare almost 60% of what I earn. lulz.
I love this latte factor story. Starting now I'll watch my spending habits. Thanks for the video.
That's the slow lane.
Hi, thanks for your videos, always looking for what you do...in my daughter's vacations I asked her to watch one of your videos daily, so she learned a lot, tomorrow she has to watch and discuss this one with me. I always recommend your channel, you have no idea how I appreciate your job.
Who is the exception?
Okay
Food for thought. Your third pay check is only 50% of the first two added together. It drops precipitously with each new paycheck. Just collecting a wage doesn't compound, its like the opposite of compounding.🤣
Wonder why he's on a hiatus?
Been taking an in-depth look at my portfolio :) But I'm back producing content now so I hope to be able to bring you some more videos soon!
@@TheSwedishInvestor Always important. I just switched aflac for trow. Making 39 more dollars a month plus the dividend growth is higher per year. Gonna add to my WBA position getting it to 50 shares before year end. Thank you for all you do appreciate your hard work!
This plan is too slow and unrealistic. But it does a reasonable job at explaining what is possible with limited resources. I don't mind waiting years but half, no over half a persons life span when they are already 20-40 is WAY too long.
(And no normal 15yo has the mindset nvm the ability to work and investment that amount. And getting help from someone else is a unreasonable response because it's not a reliablely recreate event. Also, no point in having an abundance of wealth with an old cane and a broken hip or worse...)
Ok
So when you pay your self-first. what she means in pay yourself to invest frist. not to buy crap.
Can anyone show me how 5 bucks a day for 30 years @10% is anywhere near a million?
The main narrator (The guy) said he is on an "Investing hiatus".....🤭🤭🤭😁 Chicken speak for "I got scared and ran for the exits" when the markets started to tank....!
I'm actually a little bit plus this year 😉 But I think major corrections make for better opportunities and therefore calls for more serious analysis!
Didn't know mila kunis did voice-overs
"yeah but" nobody is guaranteed to still be alive in the next 40 years 🤷🏻♂️
This is so true. Most people I have met throughout life have no discipline when it comes to money.
You can have no discipline but if you automate it, it won't matter! :)
Slow-lane millionaire education.
Great book. Fantastic content on this channel Swedish investor. Keep it up!
Scam
Erik, why didn’t you use a Swedish female’s voice….!?
Finally. 🎉❤
Wait…. Your saying “billy” bc he did it early, investing at 15 yet only out in for a few years has more money 💰 than Kim who started later but kept putting in money 💰 …she has less?? Then ur saying anyone over 25 are fucked!?!? No bueno
Xooo
I think this advice is by far the most applicable and effective if you are young and single without a family, in which case your expenses are lower whilst you also have more time for your money to compound. Perfect for someone about to graduate or who has finished their studies in the last few years.
Compounding works at a greater scale when you're young, but the advice to create financial excess for yourself by eliminating unnecessary spending is for all ages.
The next advice is to increase your earning potential and scale your investments accordingly.
Making money is easy, but its boring. Buy low, sell high. Thats all u need to do.
1159/491 = 2.36
10% constant return p.a is no longer realistic-just remember that.
Thanks for your comment. What'sap me with the number showing above for more information and consultation on profitable investments.
The SP500?
10% a year non stop for three of four decades isn't very realistic imo.
nobody said nonstop, more like average
Like this year is negative 20% but in 2 years it could be up 40%
Absolutely no one has become rich this way. There are no proven 10% yearly return investments. Even the S&P500 could take a decade before returning anything significant. But saving money from dumb stuff is always a good idea. Every rich person has become rich from a business.
Assuming you'll be able to find a 10% yield investment per year, every time time you want to invest, and those investments will have no volatility, no risk, no tax no inflation is just a flat lie. I know the message is "save as much as you can the earliest in life you can" but I see many people actually believing this kind of strategy is enough to make them rich someday, so they stop putting effort where it really makes difference.
Exactly. It s all bs. Let s remember maddoff had a 10% return for years and was meant to be the genius. It s almost impossible to get consistent 10% after inflation, without risk and active management