Continue why to invest,
It appeared, there are other financial instruments too. If I can make my own money work just a bit harder and faster, perhaps I could play catch up? Lets see how the figures stack up.
In below example; Compounding at just 2 percent more per year every year for next 20 years made for a sizeable 44 percent difference in overall returns. And over 40 years the 2 percent difference more than doubled the returns! Why Invest, indeed!
It appeared, there are other financial instruments too. If I can make my own money work just a bit harder and faster, perhaps I could play catch up? Lets see how the figures stack up.
In below example; Compounding at just 2 percent more per year every year for next 20 years made for a sizeable 44 percent difference in overall returns. And over 40 years the 2 percent difference more than doubled the returns! Why Invest, indeed!
This is due to the power of compounding!
But had I ever worked figures through like this?
The miracle of the power of compounding ensures that our investment makes money and the return on that investment makes some more money - keep it that way for a number of years and our investment quickly starts exploding. The more the time our money remains invested and/or earns a higher return, the higher the trajectory of our returns graph.
The miracle of the power of compounding ensures that our investment makes money and the return on that investment makes some more money - keep it that way for a number of years and our investment quickly starts exploding. The more the time our money remains invested and/or earns a higher return, the higher the trajectory of our returns graph.
| No. of | ||
| Years | At 8 % | At 10 % |
| # | ||
| 1 | 20,000 | 20,000 |
| 10 | 43,178 | 51,874 |
| 15 | 63,443 | 83,544 |
| 20 | 93,219 | 134,550 |
| 25 | 136,969 | 216,694 |
| 30 | 201,253 | 348,988 |
| 35 | 295,706 | 562,048 |
| 40 | 434,490 | 905,185 |
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