Interest

Friday, November 27, 2009

  • worthless advice

    David H’s Avatar

    user

    By David H, on Tue Nov 10, 2009 7:30pm PST

    The credit card companies are completely out of touch with the general public.  They will find a way to raise your rates, regardless of how well you handle your finances.  They are raising interest rates "across the board" thanks to Obama and Congress putting them on the hot seat… Read More »

  • User post: The power of compounding

    Andy’s Avatar

    user

    By Andy, on Mon Sep 14, 2009 6:27am PDT

    compund interest

    compund interest

    Question: Would you rather have a million dollars now or take a penny now and double the amount for 30 days?
     
    As expected, 90% of people chose the million dollars now option. I would have made this choice myself a few years ago. But this would have been the poorer choice, because you would have shortchanged yourself by over $4 Million at month-end. Don’t believe me? Look at penny table calculation on the right. The simple act of doubling your previous day’s investment can rapidly reap huge rewards thanks to the powerful concept known as compounding .

    Now a 100% return every day is highly unlikely, but the principle of compounding holds true for even smaller returns (though it will take longer than a month to make your fortune). This is why compounding is a core aspect of good personal finance and the reason why the rich get richer. As outlined in a Kiplinger , when you're young, you have an asset money can't buy: TIME. Start saving now and turn pocket change into riches. Compound interest has been called the eighth wonder of the world. And with good reason. It magically turns a little bit of money, invested wisely, into a whole lot of cash. Even Albert Einstein is said to have called it one of the greatest mathematical concepts of our time. Read More »

  • 4 Ways to Weather an Economic Downturn

    Nada’s Avatar

    user

    By Nada, on Thu Jul 23, 2009 10:47am PDT

    To take care of yourself, make sure you are taking these three steps. Read More »

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