I’m Frank Money – Your very effective money detective.
Did you know that YOU are a MILLIONAIRE!
No really, you are. And so is most everyone you know?
How you ask? Well I’ve cracked this case wide open and this Talkin’ Money video explains it!
Through your lifetime, you will most likely earn a million dollars, and probably much more! Here’s a chart showing the Median Lifetime Earnings by College Majors. Just look at the return of a high school degree, versus an Associate’s College Degree and All Majors – it’s pretty amazing!
There was more to the caper than I bargained for – How are you gonna manage your money? It takes responsibility, and, being financially literate!
We’ve all heard and read a thousand times how we should save on a regular basis and the younger you start the more we’ll have when getting closer to retirement. But as sure as the sun rises there will always be something that happens in your life that will make it difficult for you to part with your money to put into savings. That’s why every paycheck you should have a set portion of your salary automatically deposited into your savings account.
I’ve done the detective work on this and the later you wait to start saving, even a year or two, could mean the difference of up to $200,000 or more! Remember compounding interest? Over time your money will make more money for you. Mind blown!
In fact, if you want to have what we financial literacy fans call ‘fun’ here’s a link to the government’s Securities and Exchange Commission’s handy, dandy Compounded Interest Calculator. GO ahead, plug some numbers in, step back, and get ready to be surprised!
Good old Benjamin Franklin once said: “An investment in knowledge pays the best interest.” So it’s up to you to be a wise investor with your savings.
The prettiest two words you ever want to hear when investing are: Compounded Interest. A perfect case comes from the one and only Benjamin Franklin.
Franklin decided to leave about $4,550 at the time of his death each to his native hometown of Boston and adopted hometown of Philadelphia on the condition that it gather interest for 200 years. Franklin believed 200 years was the maximum length of time any person should be able to control assets from beyond the grave.
It could have theoretically reached well over $78,000,000 if the two cities had never spent any and had managed it well.
The point of Franklin’s experiment was trying to illustrate the tremendous power of compound interest for future generations. The longer you keep your money invested, the more amazing the power of compound interest. So start saving today, and put your money to work for you! You’ll have a case with a happy ending
Want to read more about Franklin’s amazing gift? Here’s a NYTimes article: http://www.nytimes.com/1990/04/21/us/from-ben-franklin-a-gift-that-s-worth-two-fights.html