Скачать или смотреть 🔺 One kid saves, the other becomes rich

Albert Einstein once said: “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”

While it may sound safer to save everything in cash, you’re actually leaving a lot of money on the table!

As an example, let’s say we have two people, Albert and Barry who invest in a fund that gives them 7.5% a year.

Albert invests $5,000 a year at age 18. He stops investing after 10 years and just lets the investments continue to grow.

On the other hand , Barry also invests $5,000 a year but starts at age 28 and continues his annual $5,000 contribution until he retires at age 58.

At the end of it, Albert invested for 10 years early on and only put in $50,000, whereas Barry invested $150,000 over 30 years.

Who do you think has more money at the end?

Surprisingly, Albert has more money over time with $521,000 whereas Barry only has $502,000!

The point is, it pays to invest as much and as early as possible!

If you haven’t invested yet, it’s ok! It’s better to start now than never at all.

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