http://www.consumerismcommentary.com/2009/09/04/compound-interest-is-more-powerful-than-you-know/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Mon, 22 Mar 2010 11:46:20 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://www.consumerismcommentary.com/2009/09/04/compound-interest-is-more-powerful-than-you-know/#comment-198024 Save Money Hound Sun, 06 Sep 2009 00:30:34 +0000 http://www.consumerismcommentary.com/?p=7259#comment-198024 The concept of compound interest is a powerful one. It's never too late to start saving. But off course, the earlier you start saving, the better as this article has demonstrated. If you work hard at saving in the early days of your working life, the second half of your working life will be much easier. And as it is likely that your earning potential will increase over the years, you will be saving at an even greater rate. Hopefully - depending on whether you spend more as your earn more, as a lot of people seem to these days. As they say, it is not what salary you earn, but what you choose to do with your money, that will determine your net wealth. The concept of compound interest is a powerful one. It’s never too late to start saving. But off course, the earlier you start saving, the better as this article has demonstrated. If you work hard at saving in the early days of your working life, the second half of your working life will be much easier. And as it is likely that your earning potential will increase over the years, you will be saving at an even greater rate. Hopefully – depending on whether you spend more as your earn more, as a lot of people seem to these days. As they say, it is not what salary you earn, but what you choose to do with your money, that will determine your net wealth.

]]> http://www.consumerismcommentary.com/2009/09/04/compound-interest-is-more-powerful-than-you-know/#comment-197998 Greg Fri, 04 Sep 2009 18:14:05 +0000 http://www.consumerismcommentary.com/?p=7259#comment-197998 Save anywhere, just save.... This seems to be the problem for most . While our national savings rate has increased, the bulk saved is by a disproportionately small part of our population. What turned me around was the realization that it is far easier to save money than to make money. How many hours do you have to work to earn an extra $100 that can be saved? Truth is for most if they earn an extra $100 a big part goes to taxes, then they pay other expenses leaving them with only a few dollars (5% national averge). To add $100 to savings means we have to earn thousands! On the other hand if you can cut $100 out of your expenses by eliminating the muda (waste) all of that $100 can go directly to savings. Save anywhere, just save….
This seems to be the problem for most . While our national savings rate has increased, the bulk saved is by a disproportionately small part of our population. What turned me around was the realization that it is far easier to save money than to make money. How many hours do you have to work to earn an extra $100 that can be saved? Truth is for most if they earn an extra $100 a big part goes to taxes, then they pay other expenses leaving them with only a few dollars (5% national averge). To add $100 to savings means we have to earn thousands! On the other hand if you can cut $100 out of your expenses by eliminating the muda (waste) all of that $100 can go directly to savings.

]]> http://www.consumerismcommentary.com/2009/09/04/compound-interest-is-more-powerful-than-you-know/#comment-197993 jim Fri, 04 Sep 2009 15:24:13 +0000 http://www.consumerismcommentary.com/?p=7259#comment-197993 Thanks for the opportunity Flexo! Thanks for the opportunity Flexo!

]]> http://www.consumerismcommentary.com/2009/09/04/compound-interest-is-more-powerful-than-you-know/#comment-197992 Evolution of Wealth Fri, 04 Sep 2009 14:44:34 +0000 http://www.consumerismcommentary.com/?p=7259#comment-197992 I think compound interest can be the best financial tool that people have. The mistake I often see made is that people think if they just save it will just happen. It can but if you manage your compound interest you end up far better. There are a few factors that play a role in how much compound interest can do for you. They are negative returns, time(which you focused on here), taxes and asset allocation. I wrote a post about it recently http://evolutionofwealth.com/2009/08/28/destroying-your-compound-interest/ I think compound interest can be the best financial tool that people have. The mistake I often see made is that people think if they just save it will just happen. It can but if you manage your compound interest you end up far better. There are a few factors that play a role in how much compound interest can do for you. They are negative returns, time(which you focused on here), taxes and asset allocation. I wrote a post about it recently http://evolutionofwealth.com/2009/08/28/destroying-your-compound-interest/

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