Jun 3, 2013

The Compound Interest (part I)


















Often one has talked about this on the net. In fact Einstein once said and the power it has is brutal and compared it to the most important laws that came to discover in his time.

Everyone can invest at compound interest is more, everyone should invest in this way.

The only concept that you have to hold in your mind is that the interest earned on the investment, whatever, have to be reinvested. If you get X amount take an additional 10% for your next investment will be in X amount plus 10%, and so on.




 











Each time you will be investing a larger amount, and over the years you might have considerable capital.

A clear example of safe investment, how deposits, can be combined with compound interest, a powerful tool to raise capital face higher.

You just need to have two things: time and patience. With the very fact continuously reinvest our capital interest is increasing and if you also add fruit saving periodic contributions and the issue is more interesting.

It is clear that the more interest you can get faster increase our capital, but since most people do not want to take greater risks, take for good the interest that we can offer a bank or, how are all the rage now, some bonds autonomous. Although there are many other options how large corporations that offer senior notes, for example, at a good interest and security of solvency.

Well, what we were going. An initial capital plus an acceptable interest and adding a regular savings result gives how, over time, a capital that many do not even have arisen in life.

In the next part of the article we will make a realistic example of how awesome it is compound interest, and never too late to start, but since one of the requirements asked of us is the time because the sooner we start better, more joys reach have.

An advance is not difficult to reach € 300,000.

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