hey guys welcome to my channel ever
wondered what's gonna happen if you
invest ten dollars every single day how
much money would you have on your bank
account in 20 years and how much of a
passive income with that amount of money
generate you every single year
after you're stopped investing in 20
years if you're interested continue
watching this video by the way it's
brought to you by the great courses plus
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now what is $10 for me for me as a
person living in San Francisco $10 means
buying a coffee and a cross Sun every
day but if I end up going to a fancier
coffee shop like Blue Bottle
I would even exceed $10 so if I decide
to have my coffee at home which I
already do and if you get a coffee from
Nespresso delivered to your home for me
it cost like I think 25 cents a cup and
if you try to eliminate gluten from your
diet and not get that cross Sun then ten
dollars sound like an easy daily saving
I know that in some countries in some
states ten dollars might be a more
significant amount than what it is and
here in Silicon Valley in San Francisco
but you could start investing as little
as five dollars every day because still
in 20 years you're gonna be able to
generate a significant amount of money I
hope I got you excited and before we dig
into how much you're gonna make in 20
years I'm gonna explain you what
compound interest is now before we
proceed I want to talk to you about a
thing that is called compound interest
and it's a magic thing because Warren
Buffett one set that he made all of his
money thanks to a being born in America
some lucky genes and compound interest
the way I prefer to think about compound
interest is it's the snowball effect
that helps you make interest on interest
and this way your money grows at
exponential rate let me explain this
from mathematical standpoint so years of
formula that explains how much you're
gonna make an interest in one taken
month so you have your principal how
much you're having your accounts you
have AP white and percent divided by 12
months and this is how much you're gonna
be getting every single month as an
interest so let's say you already have
$1,000 in your account
that means you've been investing 10
dollars every single day for a hundred
days then multiply that by seven percent
divided by 12 months and well seven
percent should be zero point zero right
and you end up getting five
eighty-three dollars a month but what
interesting is what happens at the end
of the month so these five dollars are
added to your principal and you start
the next month with a thousand dollars
5.83 but the thing that I'm suggesting
you also do is you add extra say three
hundred dollars because you've been
saving $10 every day and then the end of
the month you just put them on your bank
account so you are helping compound
interest by adding more and more money
into the machines so the next month
you're already starting with one
thousand three hundred five dollars and
you have the same formula going on and
this snowball effect continues and
continues no very soon we're gonna learn
how much you're gonna end up having
under your account with the help of this
compound interest magic are you gonna
ask me marina where do I get those rates
where do I get seven percent rate where
do I get nine percent rate if you're
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of all the higher the rate is the
riskier your investment is and the
risky way to save your money is to put
them into a savings account but I
wouldn't even call that investing
because well if you choose a good
account like Capital One Marcus by
Goldman Sachs or Li Bank which pay you
more than 1/10 of percent you will still
end up getting 1.5% 1.75 percent maybe 2
percent if you're lucky but I would
still advise you to have some money in
those savings account because we don't
know what's gonna happen tomorrow we
don't know what's gonna happen in the
week and you know for me it's really
important to have these savings that I
know I can spend right away if something
happens but then unless you have those I
would start investing into riskier
assets and let's take a quick look so
for example S&P 500 the index that has
stocks of different companies ranging
from oil and gas to media and health
care this index fund has been growing at
a rate of 9% for the past 15 years now I
personally have invested into an index
fund with Vanguard it is called V T
Sachs and it has been growing at
approximately 5 point 79 percent over
the past 20 years so my suggestion would
be diversifying your $300 a month or $10
a day between those higher yielding
index funds and you can invest through
Vanguard or any other app that's on the
market of course there are other ways to
invest with higher and lower rates but
this is something I decided that I would
invest in because it looks easy and I'm
not a professional investor and I just
want to put my money there and watch it
grow and not really manage my funds
every single day I just want to you know
add money and add money and relax and do
something that I'm better at like making
this videos and now let's take a look
what's actually gonna happen to your
bank account in 20 years if you invest
10 dollars every single day at 7 percent
return rate okay here's a quick website
saving no dork
so for example you save $10 every day
for the next 20 years at an investment
returns 7% for example you invested in
something similar to S&P 500 or BT Saks
we've talked about
and we press calculate so in 20 years
you will have one hundred fifty nine
thousand two hundred seventy eight
dollars on your bank account now this is
already a substantial amount of money
but what's more exciting about this
amount is that in twenty years
you can stop investing you're like okay
I'm done saving $10 every day I want to
get my Starbucks coffee I want to get my
cross Sun but you still have those one
hundred fifty nine thousand dollars that
you can still invest this is your
principal and let's take a quick look so
you take those one hundred fifty nine
thousand dollars and this is your
initial deposit there is zero monthly
contribution and say you invest them for
a year at a rate of seven percent you
see what's gonna happen you're gonna
earn interest of eleven thousand dollars
that means that those one hundred fifty
nine thousand dollars in twenty years
they would pass if we make you eleven
thousand dollars in a year and this is
what everyone calls passive income okay
let's look at another situation for
example you decided to invest twelve
dollars instead of ten because you
decided to save on clothes you decided
to save on a car whatever this extra
$2.00 savings a day let's see what's
gonna happen to your bank account so
twelve dollars every day for 20 years at
7% rate $191,000 so you have over thirty
thousand dollars extra on your account
now in 20 years and so for example you
decide to invest them again at seven
percent thirteen thousand three hundred
seventy nine dollars of passive income
in twenty years and remember in 20 years
you stopped investing I suggest you
don't stop but let's imagine you stopped
investing you stopped saving money
you're just making thirteen thousand
dollars a year and you still have your
principal you still have your one
hundred ninety one thousand dollars in
your account sounds amazing right and
what you have to do right now first take
this effort and try to save at least ten
dollars a day and okay if ten dollars is
impossible to save we can take a look at
five dollars saved every day at seven
percent return rate for twenty years
it's still seventy nine thousand dollars
you know just mentally absorb that five
dollars saved every day for 20 years at
seven
percent interest rate with a compound
interest gets you to seventy-nine
thousand dollars and second yes you need
to learn how to invest money but there
is safe kind of safe things to invest in
like Vanguard index funds S&P 500 you
just need to choose an app or a
brokerage that you're gonna work with
look at the fees and stuff and you know
just start investing I'm not a financial
adviser I would just tell you that I'm
using bank guard and in the past four
weeks I've made around nine hundred
dollars just because I invested in a V T
Sachs fund the one that I've talked
about and then yeah you just need to
wait and you just need to be consistent
with what you do and hopefully in 20
years we're gonna get you to that eleven
thousand or thirteen thousand passive
income thank you guys so much for
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