Ramit Sethi shows that gradually raising your investment rate from 5% to 15% over ten years generates $845,000 more than staying flat. Two $80K earners investing 5% consistently end up with $550K; those who bump up 1% yearly hit $1.4 million. He challenges viewers to open a Vanguard or Fidelity account by December 15th and commit to the increase.
But right now, if you're investing 4%, let's be honest, a lot of you are investing less than 1%. What the fuck is wrong with you? That's why you're watching this video. Set it up December 15th. Put the link to your Vanguard account or your Fidelity account. I want no excuses. And you say, currently I'm investing 1% of take-home pay. I'm gonna increase that to 2% next year, to 3%. Keep going. That is worth hundreds of thousands of dollars. Look at the math. Here's two people, both make $80K a year. Person A invests a flat 5% every year for 35 years. They end up with about $550,000. That's pretty good. That's fine. Person B starts at 5% but increases by 1% every year until they hit 15%. Then they stop increasing it. They end up with almost $1.4 million. Do you see that for logging in like 15 times to your Google Calendar, you made $845,000 more dollars? Again, this is how wealthy people think.
