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Do You Really Need The Jordans?

Name: Do You Really Need The Jordans?
Uploaded: 2024-12-09T15:45:02+00:00
Duration: 44 s
Channel: Shanli Liu, CPA, CTP
Description: In this short personal‑finance video, Shanli Liu, CPA, CTP, uses a concrete example to illustrate the concept of opportunity cost. She asks viewers to…

9 Dec 2024 · 1 min

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In this short personal‑finance video, Shanli Liu, CPA, CTP, uses a concrete example to illustrate the concept of opportunity cost. She asks viewers to imagine buying a $200 pair of Jordans at age 25, then shows what that $200 could become if instead it were invested in the S&P 500 for 40 years at an assumed 9 % annual return. The calculator demonstrates that the $200 would grow to over $6,000 by retirement. The point is to highlight how small discretionary purchases can have large long‑term financial impacts and to encourage young adults to prioritize long‑term investing over immediate consumption.

Chapters

If you have a $200 pair of Jordans that you really want to buy, let's say you're 25 years old, you're like, I deserve these, I worked really hard for them. Okay, fine. That $200 invested just in the S&P 500 between now and the time you retire, do you want to know what that actually is? Investment calculator. So this would be a $200 pair of shoes, additional contribution, make zero. 40 years, we're going to make our return 9%. Calculate. So instead of buying that $200 pair of shoes, when you're 65, it could be over $6,000 if you just invest in the S&P. And so if you would buy those shoes for $6,000, then maybe don't buy them today for $200.