Augen on 14 January 2014
I just did a 450 a month for 40 years calculation to demonstrate
TOTAL INTEREST
$2,412,999.64
TOTAL CONTRIBUTIONS
$216,000.00
That is right, of your 2.6 million dollars, you actually put away 216K over your life time. Now just imagine a wealth person putting away, say 5K a month...
TOTAL INTEREST
$26,811,108.75
TOTAL CONTRIBUTIONS
$2,400,000.00
Easy to see how the wealth gap grows when a percentage of the society keeps putting money away seeing the advantage and large section never does. As the video pointed out the 1% makes a significant amount of its money off its money creating a cycle of wealth that unless someone is an idiot can sustain itself for generations with minimal effort.
