I know this headline sounds like an incredibly bold claim – I thought so too. But then I read a recent piece on MarketWatch that makes a rather convincing case for it.
It’s not a set of tech companies to add to your stock portfolio, nor does it involve striking gold with starting and scaling your own business. All you have to do is consistently save a ton of money across numerous domains over 40 years. The money you put into those things would instead be transferred to a savings account.
In particular, the author focuses on these 10 areas:
- Quit smoking a pack a day ($6.28): $291,000
- Quit drinking a case of soda every month ($25): $38,000
- Don’t get any tattoos ($500 each): $3,500 if you skip out on seven of them
- Don’t make car payments every month ($100): $152,000
- Avoid eating out once a month ($35): $53,000
- Avoid buying lottery tickets every year ($1,000): $127,000
- Don’t buy two video games every year ($275): $11,000
- Don’t spend yearly maintenance money on pets for the year ($1,000): $127,000
- Give up your daily coffee at Starbucks ($4.50): $30,000
- Put a certain amount of cash away every day ($0.75): $35,000
Add up the total costs, and you get $870,000 saved over 40 years.
Now, this may seem like a rather rigid and extreme example of frugalism. But even if you were to follow half of the items on this list, you could save up a significant amount of money for retirement. And that’s BEFORE you ever put any of that money into investments that leverage the power of compounded growth.
All of this is to show you how incredibly simple saving can be. It’s just that human beings have this weird fetish for making simple things incredibly complex.
But what about you? Do YOU think this plan is realistic, or is it hanging on the edge of being borderline insane? Reply to this newsletter and let us know!
From 1 Million to 100 Million Subscribers: An Impossible Goal for Peloton?
Peloton is one of those unconventional companies in the fitness space that seems to succeed when logic and critical thinking tell you every possible reason why their signature at-home fitness bikes (costing +$1,000) should flop.
With 1.09 million paid digital subscriptions, they experience a MASSIVE 113% over the course of a single quarter. And that’s not including the 172% gain in revenue for the company!
Now, they want to reach for the stars and amass a total of 100 million paying subscribers. For context, there are a total of 200 million people in America who go to the gym. Sounds like the dream of someone who clearly doesn’t have their head screwed on right.
Yet they believe they have a method to their madness. They plan to expand towards major tech platforms such as Apple and Amazon’s TV apps. Peloton intends to replace the 35 million treadmills that currently exist in American households. And they want to expand towards other international markets. Finally, they want to make their equipment more affordable.
Can they do it? I don’t deny they can, but this is a multi-year plan at best. Plus, it does not account for a reduction in at-home fitness equipment following the end of the COVID-19 pandemic. We’ll see what happens with these guys over time…
Six Months In, and 100,000 Restaurants in America Are Shut Down
It really sucks to be in the restaurant business right now. Seven months ago, you would have to be an idiot to NOT be in a $899 billion industry where sales were projected to consistently grow by several percentage points.
But according to the National Restaurant Association, that dream is dead. In fact, their most recent survey indicated that 1 out of every 6 restaurants are closed either long-term or permanently. This directly translates to $240 billion in sales flushed down the toilet.
If you thought that restaurants were on a tight budget due to losing lots of money during the economic boom of the last 11 years, watch them struggle now. They can’t pay employees, and they sure as hell can’t cover rent.
Without relief, up to 40% of restaurant owners believe they will not be in business by the time 2021 comes around. Sales are down 34% in the previous month of August. At best, 71% of all employees are actually staffed.
This really sucks for the restaurant owners, but it’s equally horrifying for frequent diners who view these restaurants as more than a place to pay for food. To these people, restaurants are a vital part of their community that bring purpose and unity to their lives.
See Ya Later, Suckers! 33% of NYC Residents Are Leaving for Good!
According to a study done by Siena College, over 33% of all residents in New York City with an annual income of $100,000 or more are seriously considering the idea of leaving the city for good.
Several other key findings were equally revealing, so I’ll just share the juiciest ones here:
- Income taxes were cited as a major problem by 75% of survey respondents
- 69% of participants say that NYC will take much longer than one year to make a full economic recovery
- 37% expressed serious intent to leave the city within the next two years
- 53% said they are very worried about sending their children back to school on a full-time basis
- 38% of NYC residents say the quality of life in the city is good (before the pandemic, that number was a 79%)
New York City may be done for – not permanently, but a very long time. It is not the same city that it was just seven short months ago. It has gone from “the city that never sleeps” to “the city that ALWAYS sleeps”… because honestly, what else are you going to do in a city that is virtually empty and dead in the mid-afternoon?
This is what happens when holier-than-thou politicians raise income tax rates to as high as 90%. People LEAVE and find a better city where they won’t have their eyes gouged out by Uncle Sam…
The $100 Billion Rental Crisis That Just Won’t Go Away
A few weeks ago, the Centers for Diseases Control and Prevention (CDC) announced an emergency moratorium on evictions. In plain English, this order temporarily bans landlords from evicting tenants until December 31st due to failure to pay rent in full.
However, the 40 million Americans who rent an apartment or home aren’t out of the woodworks just yet. Not only do they have to fill out a form with their landlord’s signature to receive protection from the federal government, but they are also not absolved from paying rent. One day sooner or later, they WILL have to pay.
Furthermore, the landlords are not absolved of paying their mortgages and covering all of the maintenance costs. Unless something is done to help them, you’ll see a record number of foreclosures on all of their properties.
The only way out of this disaster would be a fund for emergency rental assistance to the tune of $100 billion. This was part of the HEROES Act proposed by Democrats, and even then it’s a MINIMUM amount. It doesn’t factor in the reality of unemployment benefit payments ending in late August, which puts low-income renters at additional risk.
So as you can clearly see, this moratorium isn’t solving anything. It’s merely delaying the inevitable collapse of the American housing market for a second time…
Be Elon Musk and You TOO Can Make $13 Billion in 7 Days
You know how Apple and other tech companies have a “day” every year that’s entirely dedicated to all of the new products and software applications they plan to release in the near future?
It appears as if Tesla has their own day too, which is known as “Battery Day” and is scheduled to take place tomorrow. This created an immeasurable amount of hype in the stock market, which led to a 19% gain in shares of Tesla between last Friday and the Friday before it.
We don’t know what exactly will be announced. A new line of Tesla vehicles, brand new battery technology that does more with less energy, mass-scale manufacturing of said batteries.
But the rising surge in Tesla’s stock price made Elon Musk $13 billion richer… along with several tech executives who had their own fair share of announcements. For instance, due to Oracle obtaining a minority stake in TikTok, cofounder Larry Ellison added a cool $4 billion to his overall net worth.
It must be awfully nice to be a CEO of the world’s most successful electric car company.
Do YOU think it’s fair for one man to make this much money just because the price of a stock went up? Let us know your thoughts by replying to this newsletter!