Towards the end of the holiday season, I often find myself in the same situation. I wake up one morning and decide its time to live a healthier life. The first day back at the gym is painful. After a couple weeks as the habit forms, my energy starts increasing. Suddenly, a couple months later, a transformation is made with noticeable improvements. Getting your finances in order requires the same conscious decision to act. Better yet, the benefits are everlasting as they compound. While physical health fades without consistency, financial health can thrive for generations by simply getting started. How Powerful is Compounding Interest?Take the following example. Jane is only able to save for retirement from ages 25-35. Even though she stops early, her efforts leave her with a substantial sum. The key to compounding interest is starting early, as Jane actually grows a larger nest egg than Chris, who invested for 20 more years than Jane. Source: Fidelity Compound interest is an investing phenomenon that was famously referred to as the 8th wonder of the world, by Albert Einstein. By earning interest on both your principal, as well as all accumulated interest, long-term returns are magnified. When you start saving is much more important than how much you save.
Comments are closed.
|
About the O&G Research TeamThe O&G Research Team publishes insights on the global markets. Our research scope ranges from the US to China. Categories
All
Follow us on WeChat:
Read new articles and updates everyday on your phone!
DisclosuresWe may invest in some of the companies mentioned on this website. We are not responsible for the content on any external links on this website. The opinions expressed in this report do not constitute a buy or sell recommendation.
|