Want to see a fool share his “wisdom” on Youtube? This is why the internet is a very scary beast: it is not so full of information as misinformation and non-information.
Even if this guy’s 7 steps were true, let’s think about how much credit we could really give him. Check out these quotes:
- “Good Money.” Really?
- “How you can get extremely, extremely rich during time of economic turmoil.” Haha, okay.
- What’s going to happen to the economy in the next 6-36 months that will bankrupt the entire population.”
- (says it has happened before, with no details) “So there is quite a precedent for this happening extremely, extremely often.”
His “wisdom” is extremely, extremely foolish. Please do not listen to people like this. who promise you their financial wisdom. Seriously, the man predicts gold will rise to $56,000 per ounce (it peaked in 2011 at about $1,900, before this video was made). I think my favorite part is how he tries to build rapport by naming the bad guys: “I am absolutely disgusted by what the banks, politicians, and the Wall Street sharks are doing to the great families of America, and I am making it my mission in life to provide as many people as I can with real information about money, about investing, and about the economy…”
If you want to improve your financial situation, the best thing you can do is read. Yes, the best thing you can do is not invest, not buy gold, not try sneaky things. Your best option is to read. Read about stocks, read about savings, read about compounding. You need to arm yourself with real information from trustworthy sources to battle all the misinformation floating around in cyberspace. On average, the stock market returns about 10%. This means that, if you invest $1,000 now, were able to realize this theoretical 10% growth, and did not make withdraws/additional investments, you would generate:
1 year: $1,100
5 years: $1,610
10 years: $2,593
20 years: $6, 727
30 years: $17, 449
40 years $45,249
Now since 40 years from now I will be approaching the current retirement age (probably a good decade before my generation’s retirement age) it’s a good number to consider. What if I invested $1,000 every year for 40 years? In 40 years I would have $486,8511! (These numbers assume steady 10% annual growth is an impossibility).
Investing for your future (or your kids future) is not about get-rich-quick and Ponzi schemes, it is about finding a way to regularly put aside a little money and make it productive. Despite what most of us not in the upper class believe, you don’t have to be rich to make your money work for you. All you need to do is be smart. And read!
– Inspired by the recent post I wrote about class mobility (and its inspiration) and a friend’s comment that ‘poor people are taught that only rich people can make their money work for them.’