It was rewarding to deposit money I earned from reselling candy, marbles, cards, even a slightly used chess set and reinvesting and putting the rest in my savings account.
I actually saw that account grow in value over the years and witnessed the power of compounding.
Today, a regular savings account still yields a 0.01% interest rate (just checked Bank of America’s website).
What’s the motivation for a kid (or anyone) to put money away when interest rates are basically zero?
Now add to that the normalization and ever increasing rate of inflation. Earning 0.01% interest (even 4%+ on high-yield savings accounts) when CPI is near 4%, but we all know it’s likely over 10% for most people results in a devastating and crushing reality whether people know it or not.
There’s little chance for an average kid to generate wealth without learning to buy valuable assets, become a top earner in their field, or own a profitable business. Subjects not taught in most schools.
It should be easier for people to save their hard earned money and be rewarded for saving rather than recklessly spending.
The only solutions I found are: control your costs/spending (includes student debt) and own a profitable business, become a leader in your industry so your income grows at or above the rate of inflation, and buy hard assets (acquire rental property, gold, S&P 500 index funds, #bitcoin).
The allocation to one or many of the above depends on the person. Some aren’t suited to own a business, others might stress out investing in stocks or bitcoin. Find what works for you. I highly encourage everyone to spend a few hours every week learning and seeing what fits.
Hope this post helps at least one person. It’s something I wish someone would have told me when I was younger!
#gn #nostr #nostriches #wealth #pleb #plebchain #proofofwork #stacksats
