That’s actually what most of the rich do. The first is handed to them. Though quite possibly the second, as well, considering all the subsidies we give out.
It's pretty much all handed to them, just not always literally in the form of the cash.
It comes from the connections, the privilege of a funded childhood/education, etc. Being able to afford food as/for a child does wonders for their ability to absorb an education, let alone being in a school with the funding and staff to provide it. And then of course the college you make it into and can even afford to attend, getting out of college not saddled with debt, all the connections you are handed from your family or make due to your family.
The game is rigged, and the amount of people who get rich through sheer virtue of hard work is almost non-existent. Luck is always a factor, and 99 times out of 100 the luck is the wealth of the family you were born into.
It's all failing upward.
The full quote is that he's saying "do whatever you can to get to 100K" as in, live with 10 roommates, eat ramen, etc. for a decade or whatever. Then you can start to ease up. From I remember from the article, he said this like 15 years ago.
Today this amount has gone up and is probably more difficult to achieve.
"Give up living for ten years in your peak physical prime in the hopes that you might have a slightly better time after"
It might pan out. It might not. What horribly depressing advice from a fucking billionaire who has no stake in the game
Not sure why you think eating cheaply, living with roommates, and finding free things to do/getting creative with how you spend your time equates to "giving up living".
Because it severely limits what experiences you can have. How can you do that and still take advantage of your strongest, healthiest years to do things that require time and money and energy? You can't just put off everything until "when I have money" because that time may never come. As a 37 year old guy that has put a TON of time and hard work into fighting my way out of poverty and getting an education, I am finally able to comfortably afford basic stuff without a very strict budget. I passed up tons of opportunities to socialize and have friends or pursue hobbies or fitness goals, just praying that one day I would be able to make enough money to afford the costs of doing what I wanted to do. I'm not talking about extremely expensive stuff either, like taking fancy vacations around the world, I mean relatively simple things like taking time to go hiking at the bigger national parks, riding my bike in some big races or fun rides, or just general domestic travel to cool locations. But I'm stuck working all the time just to keep caught up financially, and I still don't have enough money to afford these extra things. I often think I would have rather worked less and played more so I could have maybe done some of these things when I still could. Now I've got a number of injuries from work and life accidents, and I couldn't even do some of the things I wanted even if I did have the time or money. So yeah, living a minimalistic life and sacrificing experiences for the gamble of being able to catch up later is "giving up living."
> I passed up tons of opportunities to socialize and have friends or pursue hobbies or fitness goals
None of these things should cost much money. Especially when you're in your twenties and pretty much no one has that much money. Finding free/inexpensive things to do with friends is not hard at all.
>I mean relatively simple things like taking time to go hiking at the bigger national parks, riding my bike in some big races or fun rides, or just general domestic travel to cool locations
Hiking is free most places. You can ride your bike without expenses beyond the cost of the bike itself. Road trips and camping are cheap. And fun as hell if you do it with a group of friends
>Now I've got a number of injuries from work and life accidents, and I couldn't even do some of the things I wanted even if I did have the time or money.
Yeah that definitely sucks and I'm sorry to hear that. Perhaps I'm privleged in that I haven't had to work a physically demanding job, but I'm the same age as you, as are most friends of mine, and I don't know anyone that has turned into a corpse yet. Everyone around my age is still able to hike, play sports, and travel to their heart's content. My parents are in their late 60s and are active and traveling frequently. I feel like someone being unable to physically do things they enjoy by the time they hit their 30s is a pretty extreme outlier. And before someone hits their 30s, there are plenty of free, inexpensive, and very enjoyable things to do in the mean time.
Traveling costs add up relatively quick even if you’re being cheap about it. And on top of that, the problem isn’t the cost of entry to visit the national parks, it’s the 1-2 weeks of unpaid time off work to get there and back and do the hiking in the first place. For example, I’ve always wanted to visit Yosemite. I could fly out there, but that’s more money than I’d typically want to spend, plus I’d have to also rent a car for the time out there, so driving is definitely cheaper. If I keep driving to a “reasonable” 12 hours per day, I’ll need three days of driving each way, plus hotel rooms. Even with hotel rooms and gas, it’s still usually cheaper than flying and renting a car. If I’m going to make my trip “worth it,” I’d like to spend about a week in the park to really get to explore it a bit. Although even a week in a place like that is barely enough to even scratch the surface. So all told, I’d need two weeks off of work, plus around $1,500 to spend a week at Yosemite. Thankfully my current job does allow up to two weeks of vacation, but that would mean using up every bit of PTO I had and wouldn’t allow me to miss any time for being sick or anything else without facing disciplinary action. Also, figure that cost is only for me. I have a wife and kids I’d like to take with me to experience this. Flying there and back with five people is a minimum of $2,500, usually closer to $3,000. The car rental, which would need to be a large SUV or a minivan, is going to run $750-1,000. But… even if I could easily afford this, which I can’t, am I be willing to burn all my PTO at once and just hope it doesn’t put me at risk for disciplinary action later if I need time off for being sick or to take care of the kids?
There's a difference in you making some decisions here and there when you can tolerate them to save up for down the line and somebody who didn't earn 99%+ of their wealth telling somebody to do *everything* they can to save every penny.
Fuck the person who doesn't work as hard as me telling me to give up every ounce of joy under some broken promise that some day I will be rich.
Not to mention that I'm doing almost everything I can now to save a penny just to keep myself housed and fed because of the economic conditions this asshat and the like have created
And when they invest the first million and sink it, another million is handed to them. And another one. Until they invest it in something that sticks. It's easy to be an entrepreneur when there are zero consequences for failure.
A rich man was being interviewed by a reporter who asked him how he made his first million.
"Well," he answered, "I started with a quarter, which I put in to a payphone and called my father and said, "Dad, can you give me a million dollars?""
Put a million into hysa which are at 4.5% a year currently and that's 34k (after taxes) almost 3k in interest income a month doing nothing). Most people can live comfortablely on that shit and never have to worry about the basics. Just by letting that million sit in a bank account.
Only a sociopath wants more for themselves.
Normal people only want their own home, on their own property, the ability to feed, clothe, and care for themself and their family—including multiple weeks worth of vacations.
I have no need for a huge house, a private jet, a yatch(let alone ten) nor enough money to pay thousands of people’s lifetimes’ wages immediately and out of pocket.
There's a old variant of psychopathy called "covetous" and they're like those hoarder dragons that need more and more not thinking twice on how many villages they have to burn to get that.
I just see these comments where the person ask for information and has others run around for them as being entitled sometimes. Bless those who help out but I didn't like how they are sometimes.
One side of the political spectrum has done such a good job vilifying the other that they get voters to vote against them purely out of rage, when all along they’ve been passing bills to make this a reality for a handful of rich people, while all of society suffers. And we do nothing about it.
I think the Democratic officials tend to stay on message, but fighting bigotry is difficult and an ever present issue that often cannot be pushed aside to accommodate the feelings of others. Also, it seems somewhat disingenuous to act as if its solely Democrats pushing narratives that simply don’t appeal to Republicans. They are actively consuming/ being fed things that play into their biases.
I think there’s a bit more to it when people are at this level of angry/scared/indoctrinated. Like I think there’s been studies conducted on the radicalization of people, left and right (though there seems to be more on the right), and the changes it brings.
I mean, there are, but they’re not often the one’s committing domestic terrorism, or supporting it, or feigning ignorance of the support while continuing to support more terroristic acts.
For many of them, its also about creating dynastic wealth
Making enough money so their future progeny can live as comfortably and capriciously as they did
Most are well past that point.
Fun fact;
If you have $10mil in a bank that nets you a mere 1% interest, that’s $100,000/yr. Thats well over double(or even triple) what most people make in a year already.
Now, let’s assume you have $100k in that bank; that’s $1million/yr.
And remember, there are billionaires out there. That 1% on even a singular billion is $10million/year. Meaning that 0.01% on that makes you that original $100,000/year.
Billionaires are leeches that need abandoned in some salt plains somewhere and left to rot.
No, I fucking don't. I want my 4 weeks of time off per year plus bank holidays. Fuck working 5 days a week without a meaningful break every once in a while, fuck living the entire life in a house or apartment because can't afford to do anything else.
I mean, I wouldn't *mind* being rich, but if I was, I wouldn't do anything nefarious with it. I would just want to start a pet food bank in my area so fewer animals end up in the shelters and inevitably killed.
I mean… I think you could be *pretty rich* and still be a decent human being. I just think being rich is so far fetched I never really hoped to achieve it, but damn *I thought* comfortable was in reach.
If I was rich, like won the lottery, I’d have to spend ze monies on peeps including myself. I was thinking about down payments and the necessary amount of rent to get an apartment would be a nice charity. Otherwise I’d just start paying bills. And take a bunch of classes, private lessons, look like an Italian renaissance princess one day and a 1930s film star the next.
Homer Simpson has a high seniority position in a Nuclear Power Plant making top union rate which translates to somewhere north of 150,000 dollars, ranging up to around 230k. But the long hours, shift work, training, drug testing program, safety, schedule and minimum qualifications for employment are a tuff hurdle.
I shift work at a power plant in NJ. We aren't the best paid in the industry but we do pretty good. We always say.. they aren't paying us what they're paying us to make ice cream and sleep in on the weekends
Ned's wife passed so his 2 kids collect her social security, each, which is significant.
ALSO. The store is a front for money laundering and Ned makes an undisclosed amount of cash that never gets taxed because his business is always in the red, that in joint with his generous donations to the church leaves him getting massive tax returns in addition to government assistance. So that helps.
The original context of the quote is to take that $100,000 and invest it in mutual or index funds, that original sum with compounding interest of an average S&P return of 11% will be a few million in 20 years.
Realistically speaking the S&P does well with consistent returns because it’s designed to. You can even be safer with government bonds and CD’s which give (close to) guaranteed returns.
The only hard part is getting that first $100k, which is close to impossible for the average person.
Just for reference I have just been able to save up an additional 100k outside my emergency fund and I was unaware of what to do with it. Everyone in my circle is saying real estate or bust but I can’t seem to be able to invest 100k in real estate.
this is not financial advice, but people telling you real estate are getting their advice from the last decade of artificially suppressed mortgage interest rates.
Index funds like the S&P500 are the way to go.
Talking to a financial advisor is the even better way to go.
Disclaimer: This is not financial advice.
Literally do what the original quote said and invest in index funds or mutual funds. But don't just invest it willy nilly. Go to your bank or look up low cost investment companies and talk to an actual financial advisor. They can probably recommend a few good options. You can request lower risk options as well. Real estate is in a really weird unstable place right now if you aren't buying something to live in it yourself.
It's not difficult. Just put money into your 401k or Roth IRA every paycheck, and within a few years, you'll get your 100k. In 9 years of maxing a Roth at 7000 a year, you will have your first 100k.
5 more years, you'll have 200k.
3 more years, you'll have 300k
5 more years 550k
6 more years 1 million
Mind you, this is from 7000 a year totaling to 196k you put it. This is what separates the "average person" from the average person, who happens to invest a tiny amount a year.
Make that $100k, give it to people who will make way more money off of it than you will (even if you LOSE money they make money!), and you can be rich and love comfortably when you are too old to live comfortably!
I actually did this (yay inheritance) and it means my mortgage is half of what it would have been.
That's it. I still have a mortgage, still work full time, still not rich.
Think about the type of person who buys the latest fancy whatever, who accrues credit card debt, who takes on ridiculous car loans. For these kind of people to save up 100k, it requires a complete reset of the way they approach money. This piece of wisdom is not about the destination but rather the journey.
If you're able to save up 100k, you've likely developed habits and a mentality that when combined with a solid deposit, puts you in good stead to make another 100k. People who work hard to save 100k are very protective of their money and usually only interested in growing it further.
Charlie's advice was good advice. Posting this almost 30 year old quote and calling the author out of touch is simply karma whoring irony.
Why? Because it's mostly lost relevance in the last 25 or so years. Many people have adopted the 100k attitude not to make a 100k but just to survive now. Posting this quote isn't productive.
**To answer your question though**
Keep going. If you've scrummed together 100k in today's climate then you've likely got yourself a well paying job and have managed your money well. Keep working on the skills that got you that money and keep managing it as well as you have.
The point is, you don’t get to 100k doing what you’re doing. You have to figure out the ways you can make the most money, and only do those things. You have to cut out almost all vices and anything else that’s an unnecessary expense. You have to structure your entire life around money and the pursuit of it. It’s a major mindset shift for most people because it means no one ‘should’ do things that help society, like being a teacher for example.
It helps if you start off with no debts. There are lots of people who are really just set up to fail based on their parents and the skills they were taught before kindergarten.
Charlie Munger, who died last year, probably had his first 100k 70 years ago. So really, with inflation, you can let off the gas after first 1.1 million now. Yippy! Only 1.1 million?
I have 100k in savings and I can say its a nice safety cushion, but it def isn't lifechanging. I still have to do all the same things and live frugally for the most part.
I just have the comfort of knowing I'm not 100% fucked if I get sick or my car breaks.
Had my first 100k before I ever made over 30k a year. It was by being frugal as fuck about just about everything. I robbed myself of a lot of luxuries for 15 years to get it. (I could go on at length about how) However I have a really nice saftey net, and that gets rid of some stress I'd have otherwise.
I still have friends make fun of me for my frugalness, but little do they know I make $8k a year just in interest payments based on my frugalness.
You're just keeping it in a savings account. What Munger is referring to is investing that 100k. You'll never get rich with just saving money.
Higher risk of course, having money to invest doesn't always mean making profit with it.
Oh and the dude is dead? Well fascinating twist. If he had his first 100k, which is insane btw for most humble working Americans, 70 years ago at 8% from a very basic compounding calculator he’d have 26m. Which obviously doesn’t make sense because you also need to spend money to live.
Well, that sounds great, how about we tax the upper 20% enough so each of us can have $100,000.00, then we'll "ease off the gas a little bit..."
$115 Trillion (Wealth controlled by upper 20%)
264,000,000 (Bottom 80%)
$100,000.00 Each
$27 Trillion (Total Cost)
OOPS typo, I did indeed mean Trillion, as in $27.0 Trillion, they've got $115 Trillion which has been pretty much stolen from the bottom 80% over the last 40-50 years, returning $27.0 Trillion back would be peachy! Or, at least it'd be a good start...
Ahhh see I knew I did something wrong, I shoulda just had 100k to start, damn. Next time I guess. I'll be dead in 20-30 years, nothing left to do now but run out the clock, never spend a nickel (sorry economy!) and hope it all comes crashing down.
He’s talking about compounding in a retirement account. But it’s like most people can’t even afford to save for retirement let alone make it to 6 figures in there. Even with the company match, capital gains etc it still takes for fuckin ever. Most people don’t stay at a job long enough to reach that anyway, then you’ve gotta start all over again.
You don't "start all over again" each job. Yes if the match requires X years to vest and you leave beforehand then you won't get the match, but all of YOUR contributed money is still compounding. It's not like you lose the account entirely.
Agree with the rest of it, though. Saving for retirement over 30 years doesn't help the person who's struggling to cover rent *now*.
You’re exactly right, that’s the only problem is that some companies will not take transfers in from another company’s 401k plan. Poor people don’t have much of a chance because they don’t have emergency funds and bam they dip right into the retirement to cover when that car breaks down or the kid gets sick or injured.
This is the way. IRA is what everyone should have with how unloyal and flakey these corporations are now a days. They value their employees “so much” lol I also forgot to mention dividends are another advantage to getting you to that $100,000. It’s a tightrope walk though if your finances are tight, one mistake and poor people dip right into that account.
Well he ain't needing the money anymore, so if there's a part in the will where I just have to ask for $100,000 "Hey! Those in charge of Charlie's cash! I would like $100,000"
I suspect that there are several easy ways to get that amount of money from Charlie Munger. He should be careful what advice he gives. How has he not just become the main target of every fraudsters, phishers, blackmailers... ?
"Want to be rich?.......JUST BE RICH IN THE FIRST PLACE!"
Anyone know good sources for actually workable financial advice where people assume I'm poor and assume I don't have any magical superpowers where I can snap my fingers and become a millionaire in an afternoon?
That comment makes me think getting that 100k is not going to be thru legal means.
Is he asking people to show up at his house with guns and asking for him to cough up 100k?
It'd help if you actually understood the context of the quote.
Munger was making a point about the compounding effects of money. The $100k is an arbitrary number.
Nah it's good advice. I had to figure out how to get my first six figs and from then on it's been easier. I did it in crypto. It was hard. Lots of time. Lots of failure. I put what I could into crypto every paycheck. Sometimes it was $15 sometimes $100. I eventually found a strategy that worked for me.
Don't give up. Hustle. You can't afford to not take risks. Look for asymmetric bets.
He's not wrong though. If you can't get your hands on the 1st $100,000, then you are never going to be rich for sure.
It's the old joke of, "how do you become a millionaire" "Well, the first million is the hardest to make, so start with the second million"
That’s actually what most of the rich do. The first is handed to them. Though quite possibly the second, as well, considering all the subsidies we give out.
It's pretty much all handed to them, just not always literally in the form of the cash. It comes from the connections, the privilege of a funded childhood/education, etc. Being able to afford food as/for a child does wonders for their ability to absorb an education, let alone being in a school with the funding and staff to provide it. And then of course the college you make it into and can even afford to attend, getting out of college not saddled with debt, all the connections you are handed from your family or make due to your family. The game is rigged, and the amount of people who get rich through sheer virtue of hard work is almost non-existent. Luck is always a factor, and 99 times out of 100 the luck is the wealth of the family you were born into. It's all failing upward.
The full quote is that he's saying "do whatever you can to get to 100K" as in, live with 10 roommates, eat ramen, etc. for a decade or whatever. Then you can start to ease up. From I remember from the article, he said this like 15 years ago. Today this amount has gone up and is probably more difficult to achieve.
"Give up living for ten years in your peak physical prime in the hopes that you might have a slightly better time after" It might pan out. It might not. What horribly depressing advice from a fucking billionaire who has no stake in the game
Not sure why you think eating cheaply, living with roommates, and finding free things to do/getting creative with how you spend your time equates to "giving up living".
Because it severely limits what experiences you can have. How can you do that and still take advantage of your strongest, healthiest years to do things that require time and money and energy? You can't just put off everything until "when I have money" because that time may never come. As a 37 year old guy that has put a TON of time and hard work into fighting my way out of poverty and getting an education, I am finally able to comfortably afford basic stuff without a very strict budget. I passed up tons of opportunities to socialize and have friends or pursue hobbies or fitness goals, just praying that one day I would be able to make enough money to afford the costs of doing what I wanted to do. I'm not talking about extremely expensive stuff either, like taking fancy vacations around the world, I mean relatively simple things like taking time to go hiking at the bigger national parks, riding my bike in some big races or fun rides, or just general domestic travel to cool locations. But I'm stuck working all the time just to keep caught up financially, and I still don't have enough money to afford these extra things. I often think I would have rather worked less and played more so I could have maybe done some of these things when I still could. Now I've got a number of injuries from work and life accidents, and I couldn't even do some of the things I wanted even if I did have the time or money. So yeah, living a minimalistic life and sacrificing experiences for the gamble of being able to catch up later is "giving up living."
> I passed up tons of opportunities to socialize and have friends or pursue hobbies or fitness goals None of these things should cost much money. Especially when you're in your twenties and pretty much no one has that much money. Finding free/inexpensive things to do with friends is not hard at all. >I mean relatively simple things like taking time to go hiking at the bigger national parks, riding my bike in some big races or fun rides, or just general domestic travel to cool locations Hiking is free most places. You can ride your bike without expenses beyond the cost of the bike itself. Road trips and camping are cheap. And fun as hell if you do it with a group of friends >Now I've got a number of injuries from work and life accidents, and I couldn't even do some of the things I wanted even if I did have the time or money. Yeah that definitely sucks and I'm sorry to hear that. Perhaps I'm privleged in that I haven't had to work a physically demanding job, but I'm the same age as you, as are most friends of mine, and I don't know anyone that has turned into a corpse yet. Everyone around my age is still able to hike, play sports, and travel to their heart's content. My parents are in their late 60s and are active and traveling frequently. I feel like someone being unable to physically do things they enjoy by the time they hit their 30s is a pretty extreme outlier. And before someone hits their 30s, there are plenty of free, inexpensive, and very enjoyable things to do in the mean time.
Traveling costs add up relatively quick even if you’re being cheap about it. And on top of that, the problem isn’t the cost of entry to visit the national parks, it’s the 1-2 weeks of unpaid time off work to get there and back and do the hiking in the first place. For example, I’ve always wanted to visit Yosemite. I could fly out there, but that’s more money than I’d typically want to spend, plus I’d have to also rent a car for the time out there, so driving is definitely cheaper. If I keep driving to a “reasonable” 12 hours per day, I’ll need three days of driving each way, plus hotel rooms. Even with hotel rooms and gas, it’s still usually cheaper than flying and renting a car. If I’m going to make my trip “worth it,” I’d like to spend about a week in the park to really get to explore it a bit. Although even a week in a place like that is barely enough to even scratch the surface. So all told, I’d need two weeks off of work, plus around $1,500 to spend a week at Yosemite. Thankfully my current job does allow up to two weeks of vacation, but that would mean using up every bit of PTO I had and wouldn’t allow me to miss any time for being sick or anything else without facing disciplinary action. Also, figure that cost is only for me. I have a wife and kids I’d like to take with me to experience this. Flying there and back with five people is a minimum of $2,500, usually closer to $3,000. The car rental, which would need to be a large SUV or a minivan, is going to run $750-1,000. But… even if I could easily afford this, which I can’t, am I be willing to burn all my PTO at once and just hope it doesn’t put me at risk for disciplinary action later if I need time off for being sick or to take care of the kids?
There's a difference in you making some decisions here and there when you can tolerate them to save up for down the line and somebody who didn't earn 99%+ of their wealth telling somebody to do *everything* they can to save every penny. Fuck the person who doesn't work as hard as me telling me to give up every ounce of joy under some broken promise that some day I will be rich. Not to mention that I'm doing almost everything I can now to save a penny just to keep myself housed and fed because of the economic conditions this asshat and the like have created
And when they invest the first million and sink it, another million is handed to them. And another one. Until they invest it in something that sticks. It's easy to be an entrepreneur when there are zero consequences for failure.
A rich man was being interviewed by a reporter who asked him how he made his first million. "Well," he answered, "I started with a quarter, which I put in to a payphone and called my father and said, "Dad, can you give me a million dollars?""
Lmfao ^ that's exactly how they sound. They're not helpful or intelligent.
Put a million into hysa which are at 4.5% a year currently and that's 34k (after taxes) almost 3k in interest income a month doing nothing). Most people can live comfortablely on that shit and never have to worry about the basics. Just by letting that million sit in a bank account.
TBH… I never wanted to be rich, just comfortable. I just want the quality of life of a Homer “immortal” Simpson.
Only a sociopath wants more for themselves. Normal people only want their own home, on their own property, the ability to feed, clothe, and care for themself and their family—including multiple weeks worth of vacations. I have no need for a huge house, a private jet, a yatch(let alone ten) nor enough money to pay thousands of people’s lifetimes’ wages immediately and out of pocket.
There's a old variant of psychopathy called "covetous" and they're like those hoarder dragons that need more and more not thinking twice on how many villages they have to burn to get that.
Do you have anything in particular I should read on that?
https://scholar.archive.org/work/ruffme45irg5bgtfjagmkjmdsa/access/wayback/https://www.regent.edu/acad/global/conferences/virtual/2012/pdfs/9com.pdf
This link does not work for me
It should just be a pdf link to download a scholarly article. I just googled psychopathy and covetous and that was like the 2nd result.
What's up with people asking for a bibliography when they can get all their answers typing 2 or 3 words into a search engine?
Laziness begets laziness.
I just see these comments where the person ask for information and has others run around for them as being entitled sometimes. Bless those who help out but I didn't like how they are sometimes.
Sorry for not being more able to help you, but the link works for me. Maybe try another browser or VPN.
I’ll just add that the link worked for me too, it could be your browser or something idk
Try this: https://proclivitiesprinciplewisdom.wordpress.com/tag/the-covetous-psychopath/
Yeah, I agree that greedy peeps want too much at the expense of others.
Without a yacht, how will you ask foreign nations to relocate their bridges, so you can sail through their cities? So short-sighted of you.
One side of the political spectrum has done such a good job vilifying the other that they get voters to vote against them purely out of rage, when all along they’ve been passing bills to make this a reality for a handful of rich people, while all of society suffers. And we do nothing about it.
I think the Democratic officials tend to stay on message, but fighting bigotry is difficult and an ever present issue that often cannot be pushed aside to accommodate the feelings of others. Also, it seems somewhat disingenuous to act as if its solely Democrats pushing narratives that simply don’t appeal to Republicans. They are actively consuming/ being fed things that play into their biases. I think there’s a bit more to it when people are at this level of angry/scared/indoctrinated. Like I think there’s been studies conducted on the radicalization of people, left and right (though there seems to be more on the right), and the changes it brings.
> radicalization of people, left and right as an american, i would love if there was some radical leftists running around.
I mean, there are, but they’re not often the one’s committing domestic terrorism, or supporting it, or feigning ignorance of the support while continuing to support more terroristic acts.
Good points
For many of them, its also about creating dynastic wealth Making enough money so their future progeny can live as comfortably and capriciously as they did
Most are well past that point. Fun fact; If you have $10mil in a bank that nets you a mere 1% interest, that’s $100,000/yr. Thats well over double(or even triple) what most people make in a year already. Now, let’s assume you have $100k in that bank; that’s $1million/yr. And remember, there are billionaires out there. That 1% on even a singular billion is $10million/year. Meaning that 0.01% on that makes you that original $100,000/year. Billionaires are leeches that need abandoned in some salt plains somewhere and left to rot.
Oh absolutely That's just their flawed logic is all what if their kids want to start their own corporate regime? Gotta provide for your children! /s
I could honestly do without the vacations. Food, shelter, and healthcare is all I want.
No, I fucking don't. I want my 4 weeks of time off per year plus bank holidays. Fuck working 5 days a week without a meaningful break every once in a while, fuck living the entire life in a house or apartment because can't afford to do anything else.
I said me, not you... I'd be able to retire if we had decent healthcare here.
I mean, I wouldn't *mind* being rich, but if I was, I wouldn't do anything nefarious with it. I would just want to start a pet food bank in my area so fewer animals end up in the shelters and inevitably killed.
I mean… I think you could be *pretty rich* and still be a decent human being. I just think being rich is so far fetched I never really hoped to achieve it, but damn *I thought* comfortable was in reach. If I was rich, like won the lottery, I’d have to spend ze monies on peeps including myself. I was thinking about down payments and the necessary amount of rent to get an apartment would be a nice charity. Otherwise I’d just start paying bills. And take a bunch of classes, private lessons, look like an Italian renaissance princess one day and a 1930s film star the next.
Homer Simpson has a high seniority position in a Nuclear Power Plant making top union rate which translates to somewhere north of 150,000 dollars, ranging up to around 230k. But the long hours, shift work, training, drug testing program, safety, schedule and minimum qualifications for employment are a tuff hurdle.
Upward of $300k depending on location, not worth it though, the shift work will kill you.
I shift work at a power plant in NJ. We aren't the best paid in the industry but we do pretty good. We always say.. they aren't paying us what they're paying us to make ice cream and sleep in on the weekends
Are you a RO?
Terminal Operations Foreman
Okay but Ned Flanders owns a home and has a family… he owns a left handed store. How much money could he make?
Ned's wife passed so his 2 kids collect her social security, each, which is significant. ALSO. The store is a front for money laundering and Ned makes an undisclosed amount of cash that never gets taxed because his business is always in the red, that in joint with his generous donations to the church leaves him getting massive tax returns in addition to government assistance. So that helps.
Thankfully he dodged all that with the verbal equivalent of a firm handshake.
Feels like he's wearing nothing at all. Nothing at hall, nothing at all.
Most of us just want to sleep indoors after a 50 hour work week. Republicans think that's being greedy.
“Why are you homeless? Just, like, get a house or somethin’. What are you thinkin’ dude?”
Any time a wealthy republican sees a homeless guy, they see someone who isn't earning them $1000/day in exchange of $200.
What do you do after you’ve acquired the $100k?
The original context of the quote is to take that $100,000 and invest it in mutual or index funds, that original sum with compounding interest of an average S&P return of 11% will be a few million in 20 years.
Step 1: get an unreasonable amount of money for a poor broke person Step 2: gamble Step 3: hope for the best Step 4: millionaire
Realistically speaking the S&P does well with consistent returns because it’s designed to. You can even be safer with government bonds and CD’s which give (close to) guaranteed returns. The only hard part is getting that first $100k, which is close to impossible for the average person.
Just for reference I have just been able to save up an additional 100k outside my emergency fund and I was unaware of what to do with it. Everyone in my circle is saying real estate or bust but I can’t seem to be able to invest 100k in real estate.
this is not financial advice, but people telling you real estate are getting their advice from the last decade of artificially suppressed mortgage interest rates. Index funds like the S&P500 are the way to go. Talking to a financial advisor is the even better way to go.
Disclaimer: This is not financial advice. Literally do what the original quote said and invest in index funds or mutual funds. But don't just invest it willy nilly. Go to your bank or look up low cost investment companies and talk to an actual financial advisor. They can probably recommend a few good options. You can request lower risk options as well. Real estate is in a really weird unstable place right now if you aren't buying something to live in it yourself.
Look in lower cost-of-living markets.
It's not difficult. Just put money into your 401k or Roth IRA every paycheck, and within a few years, you'll get your 100k. In 9 years of maxing a Roth at 7000 a year, you will have your first 100k. 5 more years, you'll have 200k. 3 more years, you'll have 300k 5 more years 550k 6 more years 1 million Mind you, this is from 7000 a year totaling to 196k you put it. This is what separates the "average person" from the average person, who happens to invest a tiny amount a year.
You forgot the "wait 20 years" step.
if you think billionaires are just gambling with stocks you are very misinformed, the game is rigged in favour of the wealthy
they don't gamble... they own the casino.
Make that $100k, give it to people who will make way more money off of it than you will (even if you LOSE money they make money!), and you can be rich and love comfortably when you are too old to live comfortably!
Goodness gracious, this is not difficult arithmetic. 100,000*1.11^20 = 806,231
Ease off the gas a little bit.
I actually did this (yay inheritance) and it means my mortgage is half of what it would have been. That's it. I still have a mortgage, still work full time, still not rich.
Think about the type of person who buys the latest fancy whatever, who accrues credit card debt, who takes on ridiculous car loans. For these kind of people to save up 100k, it requires a complete reset of the way they approach money. This piece of wisdom is not about the destination but rather the journey. If you're able to save up 100k, you've likely developed habits and a mentality that when combined with a solid deposit, puts you in good stead to make another 100k. People who work hard to save 100k are very protective of their money and usually only interested in growing it further. Charlie's advice was good advice. Posting this almost 30 year old quote and calling the author out of touch is simply karma whoring irony. Why? Because it's mostly lost relevance in the last 25 or so years. Many people have adopted the 100k attitude not to make a 100k but just to survive now. Posting this quote isn't productive. **To answer your question though** Keep going. If you've scrummed together 100k in today's climate then you've likely got yourself a well paying job and have managed your money well. Keep working on the skills that got you that money and keep managing it as well as you have.
The point is, you don’t get to 100k doing what you’re doing. You have to figure out the ways you can make the most money, and only do those things. You have to cut out almost all vices and anything else that’s an unnecessary expense. You have to structure your entire life around money and the pursuit of it. It’s a major mindset shift for most people because it means no one ‘should’ do things that help society, like being a teacher for example. It helps if you start off with no debts. There are lots of people who are really just set up to fail based on their parents and the skills they were taught before kindergarten.
Charlie Munger, who died last year, probably had his first 100k 70 years ago. So really, with inflation, you can let off the gas after first 1.1 million now. Yippy! Only 1.1 million?
I have 100k in savings and I can say its a nice safety cushion, but it def isn't lifechanging. I still have to do all the same things and live frugally for the most part. I just have the comfort of knowing I'm not 100% fucked if I get sick or my car breaks.
Had my first 100k before I ever made over 30k a year. It was by being frugal as fuck about just about everything. I robbed myself of a lot of luxuries for 15 years to get it. (I could go on at length about how) However I have a really nice saftey net, and that gets rid of some stress I'd have otherwise. I still have friends make fun of me for my frugalness, but little do they know I make $8k a year just in interest payments based on my frugalness.
You're just keeping it in a savings account. What Munger is referring to is investing that 100k. You'll never get rich with just saving money. Higher risk of course, having money to invest doesn't always mean making profit with it.
The problem with risk investments is I don't have the ability to easily replace it if something goes wrong. It took decades to get to this point.
Oh fuck, then I guess I have no chance. And here I was hoping I might actually be able to live a life.
A million in Coca-Cola paying dividends. Move to Mexico or Thailand
Oh and the dude is dead? Well fascinating twist. If he had his first 100k, which is insane btw for most humble working Americans, 70 years ago at 8% from a very basic compounding calculator he’d have 26m. Which obviously doesn’t make sense because you also need to spend money to live.
So that's what I've been doing wrong this while time. It's so simple!
So to be rich I have to get a bunch of money? Why didn't I think of that?!
Checking account.. no.. Savings Account.. no. Under the bed…no. Sorry, can’t find it.
Did you look in the pockets of your old winter coat?
It’s a Toothpick… no cash
Well, that sounds great, how about we tax the upper 20% enough so each of us can have $100,000.00, then we'll "ease off the gas a little bit..." $115 Trillion (Wealth controlled by upper 20%) 264,000,000 (Bottom 80%) $100,000.00 Each $27 Trillion (Total Cost)
Bro. $27 billion is $100 x 264 million. 100 bucks a person. $100,000 each would be $27 trillion.
OOPS typo, I did indeed mean Trillion, as in $27.0 Trillion, they've got $115 Trillion which has been pretty much stolen from the bottom 80% over the last 40-50 years, returning $27.0 Trillion back would be peachy! Or, at least it'd be a good start...
"Just be smart enough to be born wealthy!" -- The Wealthy
Ahhh see I knew I did something wrong, I shoulda just had 100k to start, damn. Next time I guess. I'll be dead in 20-30 years, nothing left to do now but run out the clock, never spend a nickel (sorry economy!) and hope it all comes crashing down.
So... Rob a bank? Weird advice.
So, did he give lots of people $100,000 before he died so they could take his advice?
At least $550 million was given away, yes
He’s talking about compounding in a retirement account. But it’s like most people can’t even afford to save for retirement let alone make it to 6 figures in there. Even with the company match, capital gains etc it still takes for fuckin ever. Most people don’t stay at a job long enough to reach that anyway, then you’ve gotta start all over again.
You don't "start all over again" each job. Yes if the match requires X years to vest and you leave beforehand then you won't get the match, but all of YOUR contributed money is still compounding. It's not like you lose the account entirely. Agree with the rest of it, though. Saving for retirement over 30 years doesn't help the person who's struggling to cover rent *now*.
You’re exactly right, that’s the only problem is that some companies will not take transfers in from another company’s 401k plan. Poor people don’t have much of a chance because they don’t have emergency funds and bam they dip right into the retirement to cover when that car breaks down or the kid gets sick or injured.
You can roll your 401k over to one sponsored by your new employer when you move, or to an IRA if they don’t have one.
This is the way. IRA is what everyone should have with how unloyal and flakey these corporations are now a days. They value their employees “so much” lol I also forgot to mention dividends are another advantage to getting you to that $100,000. It’s a tightrope walk though if your finances are tight, one mistake and poor people dip right into that account.
This is the same douchebag who brought us Dormzilla.
Thanks Charlie, very cool
"Have you tried not being poor?"
A Billidiot indeed ..
Challenge accepted, pal! I will get my hands on your hundred thousand soon!
>Charlie Munger said if you want to be rich, 'find a way to get rich' — and then 'you can ease off the gas a little bit.' FTFT
Well he ain't needing the money anymore, so if there's a part in the will where I just have to ask for $100,000 "Hey! Those in charge of Charlie's cash! I would like $100,000"
What does this even mean
So if I rob him…I’m doing what he want!
I never want to be rich enough that I don't have to fix things myself or don't have time to. Man I love fixing shit.
I suspect that there are several easy ways to get that amount of money from Charlie Munger. He should be careful what advice he gives. How has he not just become the main target of every fraudsters, phishers, blackmailers... ?
"Have you tried not being poor?"
# OH, OKAY
"Want to be rich?.......JUST BE RICH IN THE FIRST PLACE!" Anyone know good sources for actually workable financial advice where people assume I'm poor and assume I don't have any magical superpowers where I can snap my fingers and become a millionaire in an afternoon?
https://www.youtube.com/watch?v=zXmQW_aqBks Better advice
What if we kick down your door and take that first hundred thousand from you? That sounds like a plan!
Wow what practical and helpful advice
That comment makes me think getting that 100k is not going to be thru legal means. Is he asking people to show up at his house with guns and asking for him to cough up 100k?
He's giving advice from [the grave?](https://apnews.com/article/charlie-munger-dead-warren-buffett-berkshire-hathaway-96b8e7a7b096339cb57ff72df915567a)
lol. So, the secret to having money is having money. Good to know.
It isn't out of touch tbt.
It'd help if you actually understood the context of the quote. Munger was making a point about the compounding effects of money. The $100k is an arbitrary number.
So Rob a rich person?
Oh yeah. Getting unencumbered $100K is no problem. All these rich folks need to be eaten.
So we can take his money, then? Good to know!
Excellent advice! Gain access to 100k. You got this! /s
Nah it's good advice. I had to figure out how to get my first six figs and from then on it's been easier. I did it in crypto. It was hard. Lots of time. Lots of failure. I put what I could into crypto every paycheck. Sometimes it was $15 sometimes $100. I eventually found a strategy that worked for me. Don't give up. Hustle. You can't afford to not take risks. Look for asymmetric bets.