Comment on Is it worth investing if I can only contribute $50 a month?

ComradeMiao@lemmy.dbzer0.com ⁨1⁩ ⁨day⁩ ago

• 13esq@lemmy.world ⁨23⁩ ⁨hours⁩ ago

  $50 per month for thirty five years saved with no interest at all is $21k, so I can absolutely understand the point of view that it’s not worth it if you’re currently struggling to scrape by to wait 35 years for what might be just an extra $14k

  If that $50 has literally no other use to you, then great, if that $50 can provide fair value for you now, it’s a tougher decision.

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  • FireRetardant@lemmy.world ⁨17⁩ ⁨hours⁩ ago

    I blew a lot of my money when i was younger, something I don’t regret spending lots of money on is decent tools, they can last a lifetime if taken care of and can save you money in the long run if you learn to do your own work. Sometimes stuff now is a better investment but it can be super specific depending on your situation.

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    • 13esq@lemmy.world ⁨17⁩ ⁨hours⁩ ago

      I absolutely agree. I used to have no choice but to buy budget and have to deal with it when stuff inevitably failed and broke. But now I’m much more financially stable, I made a commitment to buy quality when I can.

      With clothes I’m in the best of both worlds, I’m a proper hawk for charity shops and if you’re patient you can get both budget and quality. I bought a £100 shirt for £3 the other day and it looked like it had never even been worn and there’s no reason it won’t last me decades if I look after it. Good riddance to TK MAXX and fast fashion.

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  • JoshuaFalken@lemmy.world ⁨19⁩ ⁨hours⁩ ago

    Taking a step further, if the last thirty five years are any indication, that future $21k would be worth less than today’s $10k.

    Besides, to overcome inflation, you’d need to average double digit returns on your investment every year for half a lifetime.

    Like you say, it’s a tough decision if there’s anything that can provide you value now. Not to argue against savings, but expecting it to grow exponentially with no effort is folly.

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    • Hacksaw@lemmy.ca ⁨18⁩ ⁨hours⁩ ago

      To overcome inflation you need returns higher than inflation. That’s it. Historically the markets outperform inflation. You’re saying things out of fear and not reality.

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      • JoshuaFalken@lemmy.world ⁨14⁩ ⁨hours⁩ ago

        Funny how a mistake in a single sentence earns vitriol on the entire comment.

        Despite what I’d mistakenly wrote, I meant that to overcome inflation and see a return of double to quadruple your investment - which is what the comment starting this thread suggests as the outcome - you’d have to beat the market by around 10%.

        Regardless, my point was more to do with whether someone with only $50 to spare a month is truly in a position to invest in anything or whether they might be better off saving it for a rainy day or something like that.

        If someone has a few dollars to spare come month’s end, but has found themselves skipping the odd meal, that money would probably be better spent on a small grocery trip than putting it into an ETF that’ll take years to turn a profit.

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