As my daddy used to tell me, “Detective Frank Money, never under estimate the power of Compound Interest.” We were very close, especially when it came to this subject – you might say we had a ‘Compounded Father-Son Relationship’.
A perfect example comes from another wise man, you may have heard from him, 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
Granted we’re not going to be around in 200 years to see our money grow, but if you start investing when you’re young, invest wisely, you’ll be able to enjoy retirement later on down the road due to the power of compound interest.
Remember, don’t work hard, put your money to work for you and that’s called working smart.
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.