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Re: I Am Here To Answer All Your Personal Finance Questions. by akaglue(f): 12:30am On Jul 01, 2015 |
damiso: oh wao, I am motivated. Thank you for the encouragement. I have lots of idea for www.akaglue.com. |
Re: I Am Here To Answer All Your Personal Finance Questions. by akaglue(f): 12:34am On Jul 01, 2015 |
moca: I agree with you that treasury bill yield more income. You see, one should set some money aside for investment. You do not put all your income into your business. Read my post, on start saving and unleash the power of compound interest. I was talking to a friend and she said she does not believe in savings & investment. She argued that she will rather put her whole money into a business and get her returns. She went further to say that the future will take care of itself and she went all religious. I told her all she needed to build her retirement/ kids college educational account was a few years of continuous savings. I shared a simple compound interest calculation with her and she was amazed. Compound interest is simply interest on interest. According to Wikipedia, Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of interest to the principal is called compounding.This makes the principal to grow at a faster rate than a simple interest. One thing about savings and investment is that it is never too early to start and it is never too late to start. Lets look at 2 scenario of 2 different investors that both started working at age 24. Investor A starts saving and investing N200,000 yearly at the rate of 8% immediately he started working. He consistently saves N200,000 each year for the next 8 years and stops. His investment however keeps running at a compounding interest for the next 19 years. Investor B is a spend thrift and does not see the need to start saving and investing. He realizes at the age of 32, that he has to start planning for his future. He saves N200,000 each year at the rate of 8% for the next 19 years. They both decide to retire at the age 50 having worked for 27 years. Who do you think will have more money in their investment account at the end of the 27 years? Years Age Investor A Investor B 1 24 200,000.00 216,000.00 0 2 25 200,000.00 449,280.00 0 3 26 200,000.00 701,222.40 0 4 27 200,000.00 973,320.19 0 5 28 200,000.00 1,267,185.81 0 6 29 200,000.00 1,584,560.67 0 7 30 200,000.00 1,927,325.53 0 8 31 200,000.00 2,297,511.57 0 9 32 0.00 2,481,312.49 200,000.00 216,000.00 10 33 0.00 2,679,817.49 200,000.00 449,280.00 11 34 0.00 2,894,202.89 200,000.00 701,222.40 12 35 0.00 3,125,739.12 200,000.00 973,320.19 13 36 0.00 3,375,798.25 200,000.00 1,267,185.81 14 37 0.00 3,645,862.11 200,000.00 1,584,560.67 15 38 0.00 3,937,531.08 200,000.00 1,927,325.53 16 39 0.00 4,252,533.57 200,000.00 2,297,511.57 17 40 0.00 4,592,736.25 200,000.00 2,697,312.49 18 41 0.00 4,960,155.16 200,000.00 3,129,097.49 19 42 0.00 5,356,967.57 200,000.00 3,595,425.29 20 43 0.00 5,785,524.97 200,000.00 4,099,059.32 21 44 0.00 6,248,366.97 200,000.00 4,642,984.06 22 45 0.00 6,748,236.33 200,000.00 5,230,422.79 23 46 0.00 7,288,095.23 200,000.00 5,864,856.61 24 47 0.00 7,871,142.85 200,000.00 6,550,045.14 25 48 0.00 8,500,834.28 200,000.00 7,290,048.75 26 49 0.00 9,180,901.02 200,000.00 8,089,252.65 27 50 0.00 9,915,373.11 200,000.00 8,952,392.86 Are you shocked at the result? Investor A’s investment account balance is higher than that of Investor’s B by N962,000. This shows us the power of compound interest. The trick is to start saving and investing early. With just a little discipline, we can all achieve financial freedom. |
Re: I Am Here To Answer All Your Personal Finance Questions. by ladygogo: 12:34am On Jul 01, 2015 |
i like your moniker and blog name. Keep it up. |
Re: I Am Here To Answer All Your Personal Finance Questions. by akaglue(f): 12:35am On Jul 01, 2015 |
Kimoni: Thank you KImoni. BUsiness is most profitable but very risky. SO I always advice that one should set aside some funds for save investment. |
Re: I Am Here To Answer All Your Personal Finance Questions. by akaglue(f): 12:36am On Jul 01, 2015 |
bukatyne: THank you dear. I am encouraged. |
Re: I Am Here To Answer All Your Personal Finance Questions. by akaglue(f): 12:39am On Jul 01, 2015 |
Antoinne: Sorry for the late response. Kindly diversify your funds. (30% treasury bill, 30% mutual funds, 20% fixed deposit, 20% shares). Also, what is your purpose for savings? If I know the purpose, I can advice you further. |
Re: I Am Here To Answer All Your Personal Finance Questions. by Nobody: 10:03am On Jul 01, 2015 |
akaglue: Thanks so much Akaglue. You can imagine, I now do so much maths before spending money. You have had positive influence in my life. Thanks so much. Please keep it up. I will visit your blog. |
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Re: I Am Here To Answer All Your Personal Finance Questions. by akaglue(f): 11:58am On Jul 01, 2015 |
ladygogo:Thank you. Do read more of my blog posts on www.akaglue.com |
Re: I Am Here To Answer All Your Personal Finance Questions. by akaglue(f): 11:59am On Jul 01, 2015 |
feature11: Thank you. I am glad to be of help. Feel free to contact me if you have further questions on any area on personal finance. |
Re: I Am Here To Answer All Your Personal Finance Questions. by libertanna: 1:26pm On Feb 19, 2023 |
Hey. I have been a USAA Bank customer for over 20 years and cannot imagine using any other financial institution. The bank is not only convenient and secure but also offers unique features and benefits that no other bank can match. With them, I can perform any banking operations I need, and they also provide a huge range of financial services. But their main advantage is that I can call usaa phone number at any time to talk to a live person when I need to resolve any issues related to the bank. |
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