• kambusha@sh.itjust.works
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    26 days ago

    Historically, investing in a broad-market index fund has seen 8-12% annual returns. Average inflation in the US has been around 2-3%. Subtract another 3-4% for taxes, and you’re still making at least 3%.

    Anyways, the point is more about the fact how powerful saving & compounding is. Save early in life, and try to not inflate your lifestyle too much, and then you can technically reach financial independence.

    • GrammarPolice@lemmy.world
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      26 days ago

      You call 3% significant gains? I mean it’s better than nothing, but i don’t think it’s going to be worth breaking one’s neck over