Google
 

2.06.2008

Do you believe in compound interest of 10% yearly?

Why so low?
Following my posts you will find my strategy investing on Warsaw Stock Exchange.
Today's night I earned additional 2% which (through the leverage) gave me additional money. Let's assume that I earned 70% (my rate of return) per 2-3 nights. That's the compound interest that I mean in my first post. Who told you that 10% compound intrest is enough. Develope you financial education or follow my blog.
For your informaion I am out of the market today. I am waiting for the next suitable occassion. There are a lot of them on stock market. Do not worry is it bull or bear market. Educate yourself to be financially independent as me.
Fianlly, kindly please look for offers of nearest banks - how much inteest they offer you for deposits. 6%?, 7%?, 10% (pobably noone). Watch my blog everyday at your leasure time. Remember: compound interest is a future for you, otherwise please go to the bank. Check their offers now.

10.16.2007

Compound interest

I wonder when will you stop loosing money keeping them at the Bank?
Are you still keeping money on low percentage account?
Do you like funding another new car to President of your Bank?

Compound interest.

"I do not save money, because I have noting to save" – that’s an opinion of many of us.
"I am not able to generate any margin – debts on credit cards are eating all my profits".

Meanwhile it will be sufficient to put off a small amount of money on regular monthly basis (let’s say: 10% of your salary), to collect the relatively big capital, e.g. for the retirement. Here is a mechanism called “compound interest” – according to Albert Einstein – the biggest invention of the mankind.


How much is one hamburger At McDonald's? US$ 1? Let’s assume.
Eating one hamburger per week you leave at McDonald's roughly US$ 52 yearly.


Let’s assume, that for 20 years you will resign one hamburger per month saving US$ 1 and put off this small amount on bank account with zero interest rate. It is easy to calculate that after 20 years you will have still 240 Dollars (US$ 1 * 12 * 20 = US$ 240).



Now please check where is your wallet and take out the US$ 52 as equivalent of your yearly expenses at McDonald's restaurants on hamburgers. Probably you spend more on this unhealthy food.
Invest at interest rate of 7% annually. The compound interest will give you over US$ 200 of profit after 20years.
Then please find an opportunity to invest your US$ 52 at higher interest rate, let’s say: 10% annually. The compound interest will give you almost US$ 350 of profit after 20years.


Is it easy? Yes. There are plenty of opportunities to invest at 10% rate.


Remember:

If the interest rate is 7% annually our capital will duplicate after 10 years period.
If the interest rate is 10% annually our capital will duplicate after 7 years period. Compound interest works much harder.

Remember about inflation when you are looking for investment opportunity.

This is a magic of compound interest. Is it possible to force it to much more harder job? I mean the interest rate of 100% annually.

Do you know, that US$ 52 invested at 100% annually will give you over US$ 27 billion of profit after 20years !!!!!!!!!!!!!!!!!!!!!!



How is it possible?

Look how the compound interest works on below simple example:




It is a really remarkable and impressing example regarding compound interest! Worth of resign McDonald's products as well as other harmful to health food, drugs and alcohol.


Try at the moment not to think about it how much money is slipping through your fingers.


Of course, the profit of the amount 100% annually is very difficult to reach (but possible, I will show you later) but everyone is able to put the 10% off from his/her salary irrespective of it how many is earning.
It is worthwhile to utilize savings in providing to oneself with the quite fairly good financial future. Is it real? Of course, it is!


And with pleasure I would like now to present the newest publication which can be a recipe for achieving the financial success. Personally he confirmed me in the belief that I am heading in appropriate direction.

And what about you?


Thanks to this publication you will understand what the nature of investment funds relies on. You will learn why they are completely safe and you won't certainly be cheated.



Moreover you will get to know different types of funds and you will learn to manage the risk. You will create the personal profile of the investor and then you will receive the piece of the practical information from what to start!


I wouldn't hesitate to write that this publication is a real compendium of information concerning investment funds. And it is written in the very straight, intelligible to everyone tongue.


So if you are thinking of protecting the own future, you are dreaming of fantastic holidays, you would like to accumulate the cash for the education of children or you are simply thinking about long-term investing, it is this publication is exactly for you!


Please find below the website where you will find out more details, download free content, or you can order this few hundred page publication at once.