🦾The power of compound interest

Hi Friend,

welcome to my patreon smart note. It made it also to the Fintech World Newsletter…🤐

Today I want to talk to you about something that changed the way I view my finances. Something that made me go from the spending mindset to How can I grow mindset. Something that can do the same for you, if you’re willing to learn and apply it. Do you know what it is? It’s the power of compound interest.

The secret ingredient that causes your money to expand tremendously over time is compound interest. It is the undiscovered or disregarded secret tool used by the wealthy to increase their wealth. It might mean the difference between retiring with a million dollars or retiring with nothing.

It seems too wonderful to be true, isn't it? Okay, so it's not. It is math. And using some straightforward math and examples, I'll demonstrate how it all works. But first, allow me to share with you how I came to learn about compound interest and how it changed the way I managed my finances to achieve more financial independence.

You are aware that I have always provided you with the most likely circumstances to help you understand how to implement this effective money-saving tip:

Hypothesis:

• Assume you have R2,000 in savings and receive yearly compound interest of 5% on that amount. After ten years, how much money will you have? We can determine that you will have R2,000 * (1 + 0.05)^10 = R3257.78925 after 10 years using the compound interest calculation. This indicates that you have amassed interest earnings totaling R1257.78925, or more than half of your initial deposit. Consider how much more you could have deposited or how much interest you might have made. After ten years, how much more would you have?

• To avoid confusing you, the next smart note will discuss HOW TO USE COMPOUND INTEREST TO MAKE MORE MONEY. However, I also wanted it to focus on debt in another situation.

The example illustrates how, depending on whether you are borrowing money or saving it, compound interest may either increase your wealth or worsen your debt. In order to take benefit of compound interest, it's crucial to comprehend how it operates. Make sure to stay with us if you'd want to learn more about compound interest and how to calculate it.

The power of compound interest can be used to hack your way to financial independence with Easy Equities, and that's what I want to show you today.

Investing in a variety of financial instruments, including shares, ETFs, cryptocurrency, and real estate, is possible through the EasyEquities platform. One of the products they provide is a retirement annuity (RA), a sort of investment that enables tax-efficient retirement savings.

An RA is a unique account that you may create with EasyEquities and use to invest in different portfolios of assets that are overseen by qualified fund managers. You may select the bundle that best suits your interests from those that are designed to fit various risk profiles and financial objectives.

Investing in dividend-paying stocks or ETFs is an option if you're seeking for a strategy to take advantage of compound interest. Some businesses use the income from their operations to pay dividends to their shareholders. You can expand the amount of units you own and get more dividends in the future by re-investeding your dividends into the same shares or ETFs. Compound interest works in a manner similar to this, however dividends are not certain and might change based on the company's performance.

Check out these dividend rock-stars on EasyEquities! 🚀💰

🛒 Shoprite: This South African retailer is a dividend powerhouse, keeping those payouts steady for a whopping 18 years! 💪💵

💼 Sanlam: It's all about financial finesse with this South African financial services group, also rocking a solid 18 years of consistent dividends! 📈💰

🌐 Naspers: This South African media and internet giant has been dishing out dividends like a boss for the past 16 years! 📺💻💰

💼 CoreShares DivTrax: An ETF that's on fire! It's packed with companies that have been dishing out those dividends for 7 consecutive years straight! 🔥💰

🌍 CoreShares Global Dividend: Want global dividends? This ETF has your back, featuring companies from around the world with rock-solid dividends! 🌏💰

Investing has never been this wild! 🎉💸 

I want to emphasize how crucial it is that you pay close attention to how you handle your finances. And changing your financial situation into security requires understanding compound interest. The most crucial action is to educate yourself on how money functions. THINK ABOUT LEARNING HOW MONEY WORKS IF YOU WANT TO MAKE A LOT OF MONEY. Listen to this episode where I provide knowledge about money and how banks manage it to maintain control over the whole financial system.

Wait! I can’t believe we are done here…

Thank you for Reading today.

Don’t Miss This Chance to Unlock More Insights for Free🥳

You are now 1.5% smarter than yesterday!