Here’s an amazing article I found on the power of compounding. You can check it out in this wonderful blog “money FYI”

You may also like:

On Financial Discipline: a lesson I learnt from a famous movie,

Maximizing your savings by Linear Programming-Part 1,

Maximizing your savings by Linear Programming-Part 2

moneyFYI

We are all looking for easy ways to accomplish useful things.  Well here is a way to be a millionaire without winning a lottery.

Take $1,000, invest it at 5% and wait 141 years and 7 months.  Only 73 years if you can get 10%.

If you have only $100 you can get there in a little less than 189 years at 5% and 97 years at 10%

If you are in a high tax bracket, 5% is what is left over after taxes are paid on 10%

The important lessons here:

  1. By having ten times more capital, you reduce the time by less than 25%
  2. By doubling the yield you can about halve the time
  3. Yield and time matter more than the principal amount.
  4. Be very conscious of things that reduce the yield
    1. Investment fund MER
    2. Taxes can reduce yield by almost half.  Avoid taxes
    3. Tax-free growth is good. …

View original post 120 more words

Published by Anya

Founder at The Coder Chick (previously The IDEA Bucket); Anya lives in Denver and works as a Data Scientist. The Coder Chick is focused on the lifestyle of a girl in STEM and tips on how to build a business and a career in tech with a focus on skill-development, interviews, internship, and personal projects! The IDEA Bucket was originally focused on small business ventures and practical, urban lifestyles. For specific inquiries, you can e-mail contact@thecoderchick.com

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: