Starting to invest early with compound interest can significantly grow savings over time; for example, investing half of minimum wage income (£238 weekly) at 7% annual return over 7 years can accumulate to £107,000, demonstrating the power of compound interest and the importance of starting investments as early as possible.
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Minimum Wage to £107k House Deposit in 7 Years?! #shortsHinzugefügt:
Imagine, okay, somebody starts work at 18 years old.
And they work full-time and they aiming to buy a house when they're 25 years old.
And they earn minimum wage over this period of time from 18 to 25 years old, okay?
So, that minimum wage averaged over that time period is something around about £11.90 an hour. So, that's what they're earning. And they on that wage, you're earning £476 each week.
Okay?
>> Yeah.
>> Now, imagine, let's say they choose to live with their parents and they keeping their costs lower because of that. And they invest half of their total income at 7%.
So, they're investing £238 a week into an investment over a 7-year period. Okay? Just 7 years up to the age of 25 when they're going to buy that house. What do you think What sum of money do you think they're going to have after that 7 years at 25 years old?
>> Um I I don't know, Marcus. Yeah, I'm flabbergasted >> At 7%, the figure is 107,000.
>> Repeat that again, Marcus. Just Repeat that >> 107,000.
>> But what what would they have to do?
Just say that they just start from right from the beginning with that.
>> They work on minimum wage from 18 to 25.
They live at home with their parents and they save half of that.
They now have 107,000 in their bank account at 25 years old from minimum wage.
Thank you, everyone, for watching.
I'm Marcus White, leader of Everyone Is God, Britain's most visionary political party.
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