Tuesday, 8 March 2011

The Power of Compound Interest

Albert Einstein once said that “The most powerful force in the universe is compound interest”, and I certainly agree. The cumulative effect of earning interest on previous principal and interest means that the sooner you  start saving the more you will earn.


 However, the trick is to find assets that beat inflation and simply term deposits considerably every year, and that's where smart investing and trading comes in. Here's a quick video on how powerful compound interest is when you start early:   




So if you can save a little bit each month and have good money management, anyone can retire in comfort. In my next few posts I'll talk about my own investing strategy at the moment and how I'm beating term deposits by saving and trading shares myself. 
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18 comments:

  1. Nico De8 March 2011 at 00:28

    very cool ive always found that concept to be super interesting as well as helpful! but also kinda stealing from the poor :/ oh well ride the system wooo!

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  2. 4048 March 2011 at 03:15

    interest makes the world go round..

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  3. tyler_crowe8 March 2011 at 03:16

    what about money market accounts?

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  4. Merlyy8 March 2011 at 03:18

    If Einstein said it..


    it MUST be true :D

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  5. Anonymous8 March 2011 at 03:19

    People def need to read up on this more. Good job with the blog.

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  6. Raw8 March 2011 at 03:53

    Very good advice, thanks for sharing!

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  7. Korkut Üneli8 March 2011 at 04:06

    wow. i will research more in compound interest.

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  8. Justin testing8 March 2011 at 04:43

    Money is always interesting :> nice blog.

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  9. CavernDeamon8 March 2011 at 04:45

    Interesting enough. I used to transfer money to Active Deposit account to keep up with the inflation. However inflation itself was greater than 8% offered by the bank.

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  10. Kingofthemelvins8 March 2011 at 05:27

    you make it so clear

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  11. Crockle8 March 2011 at 05:46

    This comment has been removed by the author.

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  12. TheUpsideDownCake8 March 2011 at 09:02

    Interesting, but i'm always worried about inflation rates when it comes to strategies like this.
    Still +followed.

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  13. Jung8 March 2011 at 11:07

    Everyone talks about this but, I dunno

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  14. Eric8 March 2011 at 21:32

    interesting video

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  15. The Loudest Fan9 March 2011 at 00:20

    helpful stuff!

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  16. Ars Mobilica9 March 2011 at 00:46

    Wow, awesome post! I'll def. keep an eye out for your blog, follow :) Keep going!

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  17. BaxStar9 March 2011 at 04:24

    Will definitely be coming back for more info, especially since it looks like your an Aussie local too so should be extra relevant!

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  18. oieleeth9 March 2011 at 15:13

    Awesome video, thanks for the info.

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