Saving vs Investing: What’s the difference over time?
The TikTok video by Jon Erlichman titled “Saving vs Investing: What’s the difference over time?” is a powerful visual demonstration of how consistent investing can dramatically outperform simple saving in the long run. The video has no voiceover—only music and on-screen text—which makes its message universally accessible.
It begins by comparing two identical scenarios: one person saves $5 a day, while the other invests $5 a day with a 10% annualized return, compounded daily. After one year, the difference between them is minor—$1,825 for the saver versus $1,860 for the investor. But as the video progresses in 5-year increments (5, 10, 15 years, and so on, all the way to 50 years), the gap between the two grows dramatically.
Saving vs Investing: What’s the difference over time?
The TikTok video by Jon Erlichman titled “Saving vs Investing: What’s the difference over time?” is a powerful visual demonstration of how consistent investing can dramatically outperform simple saving in the long run. The video has no voiceover—only music and on-screen text—which makes its message universally accessible.
It begins by comparing two identical scenarios: one person saves $5 a day, while the other invests $5 a day with a 10% annualized return, compounded daily. After one year, the difference between them is minor—$1,825 for the saver versus $1,860 for the investor. But as the video progresses in 5-year increments (5, 10, 15 years, and so on, all the way to 50 years), the gap between the two grows dramatically.
By the 50-year mark, the saver ends up with approximately $91,250, while the investor accumulates over $1 million. This stark contrast is a striking reminder of the power of compound interest and the long-term potential of even small, consistent investments.
The takeaway from this video is crystal clear: time + investing = exponential growth. It shows that you don’t need to be rich to build wealth—you just need patience, discipline, and the ability to start small. Saving money is important, but investing that money is what builds true long-term wealth.
The simple split-screen format, with two versions of the same person side-by-side, combined with no spoken words, makes the video highly effective and relatable to viewers of all ages and backgrounds. It’s a masterclass in financial communication—delivering a big idea with zero complexity.
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