Making Better Use of the Time Value of Money
As discussed in Chapter 17, the value of time with any investment stems from the principle of compound growth, the compounding of interest received over several time periods. With each additional time period, interest receipts accumulate and earn even more interest, thus multiplying the earning capacity of the investment. Whenever you make everyday purchases, you’re giving up interest that you could have earned with the same money if you’d invested it instead. From a financial standpoint, “idle” or uninvested money, which could be put to work earning more money, is a wasted resource.
Planning for the “Golden Years”
The sooner you start saving, the greater your financial power will be in the future. ...
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