A few life choices can make the difference of half a million in a decade or so.
Most of us have seen diagrams that show the effects compound growth can have on an investment over a number of years. With a long enough timespan and a sufficiently high interest rate, the graphs are impressive. You know, like if you invest $100 each month, and you average 10% growth, you will have a quarter of a million dollars saved up in 30 years.
Now graphs like these look great, and mathematically they work, but the problem with them is we have to make the right decisions every month in order to have the money to invest. So for the equation to work out nice and pretty like the graph, we have to make the choices that will leave us with the leftover cash every month to invest. In this post we will look at a couple of life choices that will make the difference of significantly more than $100/month. [Read more…] about The Compound Effect of Our Life Decisions
