I teach finance to college students and I’m always so surprised business students don’t have any real understanding of compound interest. They understand it in theory, but don’t use it in their lives. In 10 minutes in a spreadsheet you can make an amortization chart that shows all debt and Interest payments for any loan you have, and use it to make decisions about paying things off early or what extra payments can do for you. But I like using this type of financial modeling much better to plan my investments. Use a chart to see what saving $300 per month can do in the long term in a 4.75% high yield savings account. See what $200 a month in an online brokerage could do over 10 years at 8%. Modeling this out gives you a plan and puts it in perspective. I don’t believe you can get out of debt or build real wealth without this type of thinking and planning. Spend an hour on YouTube and learn how to make one. It may change your life
Submitted March 16, 2024 at 11:14PM by thewayofthebuffalo https://ift.tt/7SPCdrI
