Alex Hormozi

This is going to be juicy.

$1,000 today, if you're 18 years old, is $80,000 in 50 years,

So the money that you make and spend now counts 80x.

Why?

Because 9% compounding, right?

It's bigger than inflation compounding.

Over 50 years, 9% over 50 years is 80x.

But we can't be one-sided.

We also need to realize that 80K in 50 years is only worth $13,000 today.

So in reality, every $1 you save today is worth $13 when you retire.

So for me, this makes making that extra $200 for a gig where you do a DJ thing or helping your buddy move or whatever is actually a $2,600 investment.

and it makes it far more worth it for me or at least when i was thinking through my saving stuff when i was starting out that made saving 100 bucks 500 bucks a thousand bucks when it was 13 grand way more worth it so number one we got to increase income number two and it kind of naturally leads to is that you got to stop spending so much money now

On the other hand, right, if you think, you know, the $500 belt that you wanted to splurge on doesn't matter, just remember that it's 40 grand in 50 years, right?

That $500 belt with compounding, reverse back to the present, is 6,500 bucks.

That makes it hurt a lot more, right?

And so here's something that's even worse.

A $500 a month car payment, that's a lease.

That three-year lease is 18 grand.

That 18 grand in today's dollars, when you retire, is $234,000, right?

And if you want to say it in future dollars, it's $1.4 million in future dollars.