Cumulative 30-year Net Worth Impact of Financial Hacks
This chart will track how the recommendations of the Budget Hacks and Revenue Generators series of posts can grow your net worth over a 30 year period. Why 30 years? I’m guessing the median age of people reading this blog is about 35 years old, which leaves about 30 years before the traditional retirement age of 65. Thirty years is long enough to truly see the benefits of compounding yet short enough to be well within the working careers of some people reading this page.
The basic idea is that small changes have large impacts to your net worth over time. Saving any amount off of a monthly recurring expense and investing the difference over time will yield huge additions in the long run. The key assumptions used in all posts is a long-run inflation rate of 2%, an expected nominal rate of return of 7.5% annually, and the immediate investment of any dollar saved into a diversified portfolio.
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