The Outrageously EASY Way To Get Rich | Compound Interest
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- čas přidán 27. 05. 2024
- In this video, I tell you easiest way to make money, get rich and build wealth.
Timestamps:
00:00 - Introduction
00:40 - Compound interest
01:41 - Simple vs compound interest
03:03 - Exponential growth
05:04 - How to get rich
07:18 - The downside
Who Am I:
I'm Kiran, a qualified Accountant and experienced tax professional living in the UK. I make videos about finance, tax and investing.
Disclaimer:
This content, and the ideas presented in it, are for entertainment purposes only and should not be construed as financial advice. Although I am an Accountant, I am not your Accountant, and no Accountant-Client relationship is established with you in any way.
The number of scammers in this chat is insane. Its a shame that some people are so fkin useless they have nothing of use to offer, so they have to steal from those that have.
Alas parasites will always feed off the healthy
Very good video. Huge congratulations for reaching such high views count with small channel. Huge inspiration!
Excellent work
I never took the step to actually invest, but I did start saving since I was very young. Around age 16. I'm now 38 and I wouldn't say money is my goal in life (or to become "rich"), but when you start seeing it as a tool to financial independence and "freedom" in life, then it will become so much easier to save some money on a monthly base.
Great video and advice, keep it up!
Well made video. Very clear explanation.
This is true except the part where you said, nobody talks about this”. Literally everyone talks about it and knows about it. They just don’t have the self discipline to apply it to their lives.
I appreciate the knowledge you've provided, There’s this woman I got in touch with during the last economic recession which cost me my job. Ms. Norman Davis helped me manage my assets by introducing my to the best trading method, I earned a lot of $$$ working with Norman at the comfort of my home. I still keep in touch with the amazing lady
I run a mini food business in Paris which have been affected by food inflation and I needed a side hustle that could help me boost my small business, so I could give my employees better wages , I got in contact with Ms. Norman a month ago and my stories became testimonies… I wasn’t charged on my first investment with her. Yes, I received my first returns last week… I’m considering reinvesting
Most family are struggling to survive. meeting Ms Davina Norman has brought me great success. Even with the economy situation I'm still sure of my $ 15,000 weekly
I want to be financially free , I currently work 2 9-5 jobs and I’m struggling to pay bills along with my moms medical bills. I heard about forex a little while ago and was really interested and wanted to get into for the longest but I never had someone who could help. Can I get her contact? I need her assistance
How can I reach Davina does she have a telegram page??
Yes, she does and is very accessible with the username..........
Nice One Kiran 😊
Been reading about compound interest since 1977. The only thing that has compounded all these years is my financial losses after years of investing in 401k; CDs; Mutual funds; stocks with Schwab; Ally; M1; and mutual funds. Every investment that claimed 3 to 7% interest never increased but the fees always did. The only people who make significant gains are people with higher income and high level investing. A British accent may help.
Tracker ETFs are the way. Cut out the middle man. Invest in S&P500 and global tracker ETF. Use justetf to see performance. Don't cash out if price goes down, it always goes back up - e.g. Covid, 2008, etc..
Well there is a price for giving someone to handle your money, they did get compound effect of your money for sure.
Kiran, you're ignoring risk, inflation, and taxes.
Of course, you can get rich easily with those assumptions.
Real life is different.
If you want to have a 10% compounded inflation-adjusted rate, you will have to put up with a very high risk; you can lose everything really fast.
And if you're lucky and succeed, then the government takes its cut in most countries.😊
Low cost index fund like the S&P500 from a company like Vanguard. Dollar/Pound cost average in each month. £100 each month for 40 years will make you a millionaire!! The key is starting early (18) and not wavering from this strategy
My kids will be rich. Ever since they were small, I have bought an S&P 500 index fund and thrown it into their Vanguard accounts. They are now past college and have big portfolios. By the time they are my age, it will be huge. I've told them they are only allowed to buy, never sell. And when they get married, the open a new account for them & their spouse. It's not hard, folks. It just takes discipline & time.
Sounds like a nice divorce settlement for their spouses one day.
@@SirHargreeves No. I've told them as soon as they are married, they need to open up new accounts for assets acquired while married. As long as they keep them separated, the (ex)spouse will not have a claim on pre-marital assets.
If they can only buy and never sell, isn't the money almost theoretical? How would they benefit from it to be considered 'rich'?
When they are older, they can sell. It's a retirement account. @@Afrinaturality
@@Afrinaturality The richest people on graveyard.
Just semi-retired by living below my means, living a simple life, staying out of debt, and paying cash for the few things I buy. I don’t live the rushed manic Mondays anymore and get to enjoy a semi-monastic life now. 🙏🏻💙☦️
Excellent video and great explanation
thank you
3% compounding savings will be dwarfed by 6.7% inflation which will also be compounding but against you. S&P500 tracker historically gives around 10% total return. Some would say it’s actually more risky keeping your money in a savings account because it’s guaranteed to lose against inflation.
that was exactly my thought on this video. You hit the nail on the head. Good luck anyone finding a vehicle with compound interest that is high enough to beat inflation after taxes.
Be careful not to be short sighted. Good financial habits are what is important. Inflation rate will fluctuate, but the habits you create could be life changing. Learn to live on less than you make. Invest as much as you can as early as you can start. Live long and prosper. \\ //,
The easiest way to get rich in this world now days is to be a hot young female, and start only fans, selling T&A. Really sad, but true.
Exactly why compounding dividends should be part of any investing plan. Set up an automatic investment plan where you pay yourself first by investing in the Dividend Kings and /or the Dividend Aristocrats (large well established companies that have raised the dividends every year for years). If you do this at a young age there little chance that you won't be able to retire early. My sister did this when she was 27 years old. She is 68 today and retired at 55 with an amazing annual cash flow from dividends. The big difference between compound dividends and compound interest is that the value of your stock portfolio is subject to the market changes. Nevertheless, in the long run the dividends will easily out perform.
Brilliant.
You have explained it very well
Your channel should have millions of views
Thank you so much, glad you enjoyed the video!
Thank you Kiran for this extremely helpful financial information. I have been trying to find a compound interest account with the banks. However, they appear not to be available. Any suggestions?
"Nobody talks about this". Literally EVERYBODY talks about this. The only two things people need to understand, to be financially successful, is how to make/follow a budget, and how compound interest works. Invest, keep investing, and understand that compound interest is the main way the "rich get richer".
Kiran,
Great video!!
I am a Sikh too, and very proud that you are using "Kaur", in your name. I use it too.
Super great advice. Look forward to more videos.
Thank you so much for watching, and for your lovely comment!
I have seen my mom n my granny using this trick. I never understood, now i know how my grandma became a millionaire. However i don't think any of her children will be rich like her.
As an investing enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over 545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor.
I agree, having a brokerage advisor for inveesting is genius! Not long ago amidst the pandemic crash in March 2020, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $550k with the help of my advisor from an initial $120k investment thus far.
that's impressive!, I could really use the expertise of this advisors , my portfolio has been down bad....who’s the person guiding you.
“Vivian Carol Gioia” is the advisor that oversees my portfolio. She's been able to gain some reputation and online recognition with over two decades in service, so it shouldn't be a hassle to find basic info.
this recommendation came at right time, very much appreciate it. curiously inputted her full name on my browser and found her site top search, no bs.. over 20 years of experience is certainly striking!
Now I feel sick, I am 40 😞 But I have invested, just not like you explained
Great teaching Kiran. Learned a lot from your teaching! Much appreciated!
My pleasure!
Started on this channel for me, staying because my parent's would beat me senseless if I didn't listen
How do you locate the compounding interest stocks versus the simple interest stocks. I’m investing in stocks but dont see the huge gains you’re showing here.
Kiran Kaur
This financial literacy video was VERY helpful - Thank you for sharing (I just joined your channel fam).
Glad it was helpful, and thank you for subscribing!!
That’s IF the stocks you pick actually increase in price. You can easily lose more than your interest in stock price.
The secret is to not pick stocks! Just have a global and/or USA tracker ETF. Don't look for a quick buck. Don't think you know more than everyone else. Just go with the flow and settle for a 8-10% gain each year (compound) and use tax free wrappers whenever possible. Add to it each year. Use a compound interest calculator to see how rich you will be in 30 years. Live a healthy life and enjoy retirement.
All well and good, but you lose up to 50% in taxes when you take money out either income tax on dividends or capital gains tax. So the money might grow but so does the potential tax liability. This eats into returns especially if any tax free allowances are exceeded.
go for long term and open a ROTH IRA too
Also, the compound interest won't be higher than the inflation rate. You're actually losing ground even with an amount that's growing
Excellent session. Sharing with my network.
Thank you!
Nobody seems to be talking about inflation. Your wealth only grows in real terms if the interest earned on your investment is higher than the rate of inflation over the same period.
Try some compounding calculators online, the annualised return goes way above inflation
Beautiful ❤️
Thank goodness for TFSA accounts
More like 5-6% per year (today) minus whatever the inflation rate % per year (17% since 2020).
Your total amount may be going up but your purchasing power is dropping at the same time
Used to crop up regularly in 11 plus Mental Arithmetic papers. Those were the days.
Thanks Great video
Glad you enjoyed it!
The vanguard SnP 500 is more likely to pay you 10% than a bank account!
The best, most easy to understand explanation I've ever seen on this subject.
Thank you. 🙏
You're welcome, I'm so glad it was easy to understand!
Hello, I am older and want to know what you think is the best to compound for my retirement? Thank you!
🤔Thank you Kiran, each 🍎ne teaches 🍎ne
The advice in the video is excellent and true for an ambitious person. It was easier for me to get rich when i learnt the method of diversification for my investment portfolio. Like spread my investments across different asset classes to manage risk. I focused on capital appreciation through high-risk, high-reward assets. Income-oriented strategies target regular income from dividend stocks and bonds. Used the value strategy to seek out undervalued assets for potential long-term gains. Worked magic!
This is really not as difficult as many people presume it to be. It requires a certain level of diligence, no doubt, which is something ordinary investors lack, and so a financial advisor often comes in very handy. That is how people are able to make such huge profits in the market.
@bezosjesss I agree, this is why I choose to delegate my daily investment decisions to a coach. Their specialised knowledge, research, and risk management skills make it challenging for them to underperform. They focus on utilising risk for its asymmetrical potential while mitigating downsides. I've been with my investment coach for over two years and have earned over a quarter-million dollars.
@tommymyershoffman My collection has been underperforming recently, and I'm considering a strategy change with the help of a coach. Is it possible to get in touch with your coach?
@georgeh Yeah. 'Heather Lee Larioni' is my advsor; I was introduced to her by my partner. She has her contact information, but you could look into her background and get in touch with her directly. She is well-known and grounded, so it shouldn't be difficult to locate her page.
@tommymyershoffman Just copied and pasted Heather Lee Larioni on my browser and her page popped up immediately. I think I may have seen this name in some reviews, but I'm not sure. I'll keep an eye on her. thank you for saving us hours of researching.
Who can save in the UK currently? With the average first-time property buyer deposit at £69k, most folks in the UK are skint and remain skint
Great video and very informative. Unfortunately 10% interest is actually rare. Can you give us some examples you have seen that has gained 10%? Thanks
A global index etf should average 10pc at least before tax. E.g. In UK SWDA is a common one. There are many more. Sites like justetf can be used to look at past history of ETFs.
What can you invest in that's compounded.
Compound Interest and the Law of 72s is the first finacial lesson my father ever taught me.
Also remember that the converse applies to compound interest on debt, such as credit card debt. A fast route to poverty...!
Excellent, so got the theory, where do I go now, what online platforms or websites do I go to to start compound interest 'EASY Way To Get Rich' process?
Vanguard SnP 500
Church
This is what Norway has been doing for it’s citizens with their oil money,it’s all been invested in the Norwegian Sovereign funds which is one the largest wealth fund on the planet.The compounded interest has become trillions of Krona .
Great informative video.
Also Kiran is such a beautiful name.
Thank you!
I’m a self made multimillionaire (net worth £5m). I invest in commercial property (retail), residential property (flats) and global index ETF funds (VWRL Vanguard). Despite my net worth I don’t feel wealthy, I still budget for things.
Really good and insightful video Kiran, nicely explained, in simple terms/analogy. Thanks.
Hey mate, kudos on breaking the millions net worth. budgeting is key to financial freedom and wealth creation! Those who plan will have a higher liklihood to succeed, no matter what the topic is. A really good book with great knowledge regarding this is 'The Millionaire Next Door'.
Would be keen to exchange email addresses and discuss a potential Joint Venture... let me know if you'd be up for it?
Best,
Harj
Being rich is having money, being wealthy is having time!
Can you show me how
@@cutetree7262 It’s not easy. I also run a company.
Because it’s “net worth”, but liquid money that you can use.
I don't know what it's like in the UK but in the US we have the 401k, which most employers will "match" your contribution up to a certain amount. That is free money, so take the match. As far as what to invest in, many 401k programs are limited in the investment choices, but if you are young then just put it in a broad based index fund. If you are a little risk averse, maybe put 20% into something less volatile. The key is don't move your investments around. Otherwise you run the risk of buying high and selling low. Just put in a little every month.
Yes, the UK equivalent to the 401k is the self invested personal pension. Great points, always take the match!
@@KiranKaurFinanceI would say that the equivalent would be the workplace pension?
Uk version is workplace pension
Employer pays a min of 3% of your wage then the workplace pension takes 1.9% so the investment is not worth much , I’d say ISA is a better place in uk
@@helennoble9587 i (and most) would def recommend opting into a workplace pension.
1.9% is way high; BC&E charge £4.50pa and then 0.5% pa on the value of the pot.
I am saving for retirement with a Roth 401k. Yes I am paying the taxes upfront and getting zero deduction on my taxes. But all withdrawals and compounding interest will be completely tax free at 59 1/2.
By the way...luv your accent
Nice vid. Did Nischa inspire u to start ur channel?
I liked the video… but… everybody is talking about this …. This is the key concept to build your wealth ….
Thank you so much for watching. Many people are not taught how to build wealth, even the basic concepts...
Do you have a video discussing Inflation and how it affect compond interest? You need to read the book "Richest Man in Babylon."
That accent tho ❤ 👩🏽🎓
Where to start investing what trustful companies?
What to invest in though?
Hello Kiran
Where are these schemes to compound my money?
Sincerely
Juergen
Sounds good but inflation will kill that
Compound interest is all it takes to become rich, and starting early is the key.
Yes, you just need to live a few hundred years. 😂
Sooo . . no one is gonna mention how beautiful this woman is?
Well done clever Sikh girl. From another not so clever Sikh. ❤
How much money is equal to richness in your opinion?
Absolutely... like talent... skills, even higher levels of consciousness. Just like a ripple from throwing a rock in a pond. It expands, reaches the shore, and returns compounded. The more people get paid ( investment).
Simple, Easy even...but not quick
I agree with you , but Warren Buffett didn't start investing until 55 years old
Would be nice for you to address people who live in the UK!
Umm... pretty sure she's in the UK bro...
@@gmshadowtraders exactly my point.. She addresses her audience as if she is in America!
I need help to do this
Perfect lady ❤
If you old your best bet is crypto, choosing the wright coins to invest is the key
Actually am I wrong in thinking that the true compounding is actually double the amount you calculated.
Second day of the penny payment means you have yesterday's one penny plus the two pennies (second day) making it now three pennies. Third day, three plus four making it seven pennies etc.
30 days 10.6 Million??
In my example, the penny from the first day is already considered in the returns on day 2, and so on and so on. There are no leftover pennies from previous days, although it would be great if there were!
What are your best options if you haven't invested and don't have alot to invest and you're almost 60?
Keep working.
Gee what a great idea, No wait once you take in inflation then how much have you made? The dollar is now worth about 3 cents of what it did at the start of its creation.
One must have time and patience. One must not let their emotions get the best of them. Seek the advice of a professional investment individual.
So, if you need time for compounding to work for you.... then if you were to change jobs, and so. start new pensions, every few years, then this would hinder compounding from working over ones lifetime. Hope this makes sense..
You need to separate/decouple your retirement/financial freedom from you career. Find instruments like 401k and IRA in USA that travel with you. You also need to compound your income to get to the point where you can invest and live without a choice on what to do.
@@krishna100982 thank you.
Started this for my son. Investing $15 weekly. He’s 15 and I’ve told him not to touch it until he’s 50. 😊
Great idea
What about somebody at 50 years old???
eye would I get 10% interest?
Im 48
I wish i knew this in my twenties.
It's never too late, right. 🤷🏼♂️ Do you have a savings account?
@@kngkrmson2179 No,i dont
Interest haram, makes a person poor… investing is the best ..
Haram according to who?
@@HaramXLan imaginary friend in the sky.
Why not choose pounds as your currency example?
A lot of the audience is US based
Interest is Haraam
🎉❤❤❤
Seems I'm the rare one here that doesn't understand financies.
Everybody’s it’s becoming smart recently
1- Tax free
2- Leveraging
3- Discounts
Most people can’t save any money.
whats your fav book on money
At the moment I would say The Psychology of Money 👍
Can you please do a video on Shariah-compliant investments? Thank you ❤
Great suggestion, and thanks for watching! I will certainly keep this in mind as I know earning interest is not acceptable for everybody
To make anything on interest you need large amounts money start with so kinda pointless for the poor would not stand chance.
Nobody talks about this is becos it has already been taught I elementary school. This is the basics. The prob is whereas u find 10%interest rate p.a. at full capital guarantee???
Thank you for watching. I'm glad you were taught this as a child. Many people are not taught compounding in relation to personal finance. There are index funds that can return close to 10% over a long period. No investment is ever guaranteed; which I am sure you already know.
Interesting , the stock market is currently experiencing a decline while bond yields are on the rise. However, there seems to be skepticism amongst investors regarding the Federal Reserve's plan to continue increasing interest rates until inflation is stabilized. As for myself, I find myself at a crossroads, uncertain whether to liquidate my $250,000 stock portfolio> I'm seeking advice on the best strategy to capitalize on this current bear market.
Investing in stocks can be a wise decision, especially if you have a reliable trading system that can lead you to fruitful days of success.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000
Mind if I ask you to recommend this particular coach you using their service?
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
I want to know what she invested in that took a penny to over a million in a month. I have a wheel barrow full of pennys to invest in that one
What account should I get if i get £14000000 please
Honest question, how do you benefit from the effects of compound compound interest by investing in the stock market?
E.g. is it because of the value growth of the stocks you are investing in? If that's the case, how is that compound interest in action?
AI generated response to your question: Compound interest can help you benefit from stocks at a higher rate and over a longer period of time. Compound interest is when the interest earned on an investment is reinvested along with the original investment. This makes the interest become part of the principal, which keeps getting bigger.
I don't know about EASY though
You can make more money investing in shares. 3% interest will not get you anywhere.
Investing in the stock market can be risky but also offers the potential for significant rewards 👍
You can make even more other ways but it is always the case the more money you can make the more riskier a proposition it looks to be. The key is learning so that you know what you are doing and are confident investing in ways most people don't think about because to them it looks too complicated.
3% is better then nothing. You can get 5% now just in your savings.
@@kauigirl808 that’s peanuts 🥜. Why do you want the bank to make money with your money for a 5% return? You’d rather invest that money in something that has a good return.
@@kauigirl808 Depending on how much you have to save you can get 7% on 4k at Santander with the Edge Saver which requires you to have the Edge Current Account which charges £3 per month but also gives you 1% cashback on your household bills (paid by direct debit) & Supermarket shopping (on your debit card) capped at £10 each. They also had an Easy Access Saver for people who had over 4k to save which offered 5.2%. I saw these advertised within the last month.