WHAT IS COMPOUND INTEREST? HOW DOES IT WORK?--AND--WHY IS IT A BIG DEAL?
Updated: Aug 21
OR WHY SHOULD IT BE TO YOU??
COMPOUND INTEREST IS MATH AT WORK! FOR YOU!!
COMPOUND INTEREST KEEPS COMPOUNDING --AGAIN AND AGAIN AND AGAIN AS LONG AS IT IS INVESTED!!
IF YOU TAKE OUT A 401(K) LOAN--YOU HAVE STOPPED THE COMPOUNDING! DON'T DO IT.
DON'T DO IT.
Compound interest works over time-it is a marathon NOT A SPRINT.
Therefore, you must start your compounding early so that it will have your whole work life to compound into your retirement. Imagine this, if you will, you set an automatic deduction into an investment and continue until retirement-Do the math! You can find out how much you will end up with.
THE FOLLOWING EXAMPLE IS FROM DAVE RAMSEY'S FPU CLASS!
If one person starts investing $2000.00 A YEAR from age 19 to 26 and stops-AT AGE 65 THAT PERSON HAS $2,288,996.00 (ESTIMATING INTEREST)
And another person started investing $2,000.00 at age 27 and continues until age 65--at 65 he has only 1,532,166.00.
WHAT HAPPENED??? WHY IS THIS? THE ANSWER IS TIME AND TIME FOR COMPOUNDING!!!
START TODAY! BUT YOU MUST HAVE YOUR BUDGET IN PLACE AND PAY OFF YOUR DEBTS TO BE ABLE TO DO THIS CONSISTENTLY.....
STILL NEED HELP? PLEASE CALL.
FINANCIAL PACEMAKER COACHING
MARLA
MASTER TRAINED FINANCIAL COACH