Making Your Dollar$ Work For You!

Last Update: November 16, 2019

How Interest Can Compound Your Money.

"Wealth, viewed in its proper sense, is a means of increasing one's own creativity, a phase in the evolution of the human race." Leonard Reed

If you set aside one dollar today, and squirrelled it away in a savings account that paid 5% simple interest, and if you saw to it that your account was updated each year, your family would have one million dollars by the year 2262.

Your family would be billionaires by the year 2403; and would be as wealthy as the combined fortunes of the Rockefellers, Rothschilds, DuPonts, and Mellons by the year 2453. You would be a trillionaire by the year 2544.

If the average price of land goes for $10,000 an acre, you could buy the state of Texas the following - in 2545. By 2667, you could buy every square inch of North America. And you could own all the earth's land area by 2703.

You would have enough capital by 2883 to earn twice as many dollars in annual interest as the number of inches traveled by a beam of light for one full year. And only 48 years later - in 2931 - you could be earning ten times as much money!

And in the year 2992, you would earn as much money in interest as the toatal pincipal you had in 2931. Coming back to earth for a moment, it is important to see why this marvelous gift of compound interest is available for everyone to use.

There is much more than empty space behind the old expression, "time is money." The march of time is pervasive - and it can't be stopped by breaking the hands off a clock, interrupting the sway of a pendulum, standing in the way of a sun dail, setting back your watch, or tearing the pages off a calendar.

Money Has Time value!

An individual won't loan a dollar unless he can get back more than a dollar at some future date. Why should anyone loan money and put off buying the things he wants, unless he or she has a reason? Interst is that reason.

You can be sure of one thing; through careful financial planning, you can use compound interest to become a millionaire several times over - and you can do it in your life time.

Time is the scarcest resource that a man has to work with. Each second is unique - it only passes by once, and life is short. Living life to its fullest means getting as much done as soon as possible.


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Karen117 Premium
Thanks for that interesting information. It is pretty mind boggling.

I am thinking of that concept with Christmas coming, I would rather gift my grandchildren with some financial compounding starter packs instead of buying them more toys and, "stuff" that they don't need.

Thanks for the prompt to think and understand the power of compounding interest.

Karen
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YanFellow Premium
Love your examples but where will the world be by 2931? :-)

Einstein called it the 8th wonder of the world but the wonder is where you can get 5% interest these days. You're luck to find a savings account that pays 0.5%

But point taken indeed.

Even if you save a little every month, you will benefit massively when yoi're older.

Too many people do not have a long-term time frame and are oblivious to the benefits of deferred gratification.

A lot of people fail at internet marketing because they don't see instant results and give up.

Ian
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rjkennedy Premium
Yes, a lot of changes have taken place over the years. Thanks for checking in.
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Gina1923 Premium
Amazing post, congratulations RJ , Keep on sharing your good ideas and tips. This would be valuable on our journey to success!
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rjkennedy Premium
Thank you Gina for stopping by.
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jojocinq Premium
Great advice
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rjkennedy Premium
Thanks!
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starfalex123 Premium
Great stuff Congratulation to you for sharing such Amazing post with us interesting. Keep up the good work. All the best to you on your journey at WA. Have a great weekend. Fitzgerald
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rjkennedy Premium
Thanks. Much success to you too, my friend
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