Want to understand the importance of compound interest already, the hardship that also should understand compound interest -- awn case
As laic, what is his biggest pursuit?
As a typical low person, my answer is the money that the flower is not over, namely money is free.
For this dream, I very money of hard study, job, live frugaly, assemble... final I realized this dream eventually, it is not easy to be held out really, for this I slept for ages to not be willing to wake.
Should accomplish money freedom simple? Look at this socially what great majority person still is holding to 2.1 line is daily, answer nature is self-evident. Money freedom can be very difficult, but be in friend circle, money freedom always feels is a very simple thing.
Regard a conduct financial transactions as division, the friend is encircled already little not the client that cares conduct financial transactions, little also not person of the same trade, below this kind of circumstance, compound interest it may be said is the high frequency word that the friend encircles. Want money freedom so? Will enjoy the magic power of compound interest! ! ! Want our benefit to roll benefit to roll benefit to roll benefit to roll benefit to roll profit only. . . Need not how many years can money is free.
Do not believe the might of compound interest? Big scientist Einstein can be pair of compound interest doubly praise highly: "Compound interest is " the 8th big miracle of world " , have more powerful than atom bomb force. Have more powerful than atom bomb force..
It is the dream always has a day when awake, the miracle of compound interest is good, but reality allows this no less than mad fond dream.
The tower sends fokelore to understand chess and make king very glad on the west, he decides to want handsome reward on the west tower, the tower says on the west: "I do not want your handsome reward, majesty, want you to admired a few wheat to go on my chessboard only. 1 is put in the 1st grid of chessboard, 2 are put in the 2nd grid, 4 are put in the 3rd grid, 8 are put in the 4th grid, the rest may be deduced by analogy, the wheat bead number that puts in each grid later is 2 times what the Mai Li that puts in a grid counts, until put full the 64th grid went " .
King feels very easy to be able to satisfy his requirement, agreed then. But very fast king discovers, pass power for many times, formed a huge number, although the treasury all commissariat give him, insufficient also 1% .
This story told us the might of compound interest already, what also told us compound interest is not actual. This world can not hold the thing that the index rises all the time, as the amplification of dimensions, growing speed to put delay necessarily is objective law.
And the first fraud that this is compound interest -- dimensions can limit growth, add fast maintain hard, the charm of compound interest also is mentioned with respect to have no way. This is very much make economy, no matter be,be being returned from media is adviser of conduct financial transactions, say the fact that have to the client innocently.
Compare with whole world look of course, our individual impact is extremely tiny. So although reality limitted the infinite growth of compound interest, but to our individual character, enjoy the magic power of compound interest, realizing money freedom always is not tickler.
Our demand is not high, suppose an investment project can make us annual now asset can get the growth of 10% . So if we have instantly 100 thousand, next year we have 110 thousand, the year after next has 121 thousand, have 259 thousand 10 years later, after 20 years 673 thousand, there is 1.744 million after 30 years.
That is to say when if a mom is in,her child just was born, cast 100 thousand enter this investment project, so when his child gets married 30 years old when establishing line of business, the house is bought in city of a gleam of already unchallenged, remnant is returned after buying a house in 23 lines city even many money will improve life quality.
This is very good thing, but, but the problem depends on, we go where seeking long-term, stability, can you offer the investment item of 10% accrual every year?
Believe to have stability recently annual the person of 10% interest income, throw money to the person of P2P platform, there is many connecting now capital was done not have. And pursuit year turn profit 10% , do not beg what have 10% profit every year?
I go up an article be " 10 years decuple, quantify investment to aid your fond dream to come true " , politic year turn profit 26% , yuan Chao 10% , didn't this also achieve the magic power of compound interest? I always cannot make the face of myself. Right, accrual is to reach, but process but far do not calculate on stable. We can see politic year earnings count:
We can see, basic each years politic net value is enduring 15% right-and-left wave motion. This fluctuant extent to many people character, can not calculate going up is bagatelle affection, so whether insist to come down this is a problem that is worth to think.
Because of this compound interest the 2nd fraud is: Have steady high compound interest hard for a long time. And the precipitation that lacks time, the charm nature of compound interest also is nonexistent.
See here, the friend that sells fixed income the product begins excited wash one's hands with invisible soap and imperceptible water. But have many interest rate that can achieve long-term stability,firm accepts a product, want to feel the magic power of compound interest so, that must be gotten should choose solid to accept a product.
I can take wind tell to everybody, these stabilize the product of accrual for a long time, no matter be the product of bank or insurance company, the income that it provides is reliable. But, a professional name is called a money psychedelic do not know to have how many friend had heard of.
What is called a money psychedelic, it is we can see money is in really constant growth, but the thing that we can buy is less and less however. Simple for, the money is psychedelic it is the growth that with the money that will describe people to bring inflation growth regards as is fortune.
That is to say, the asset that becomes you increases rate the speed under inflation, and you feel however the cash increase on your hand. So congratulation you, you entered a money psychedelic in the center.
The product of long-term fixed income 1000 good 10 thousand good, exclusive and bad it is a basis distributive of wealth of society is reasonable result, firm closes a product to run not to win the business that inflation is big probability. And compound interest not only can action the appreciation at asset, inflation also is go with compound interest calculative.
So compound interest the 3rd fraud is: Because inflation also is the formal existence with compound interest, if run,do not win inflation so, so our money growth is a money nevertheless psychedelic. Our real money is answered actually ceaseless as the elapse of time suffer shrink, this moment, the charm of compound interest to us character is deadly.
Style or manner of writing so far, we can return thematic gist: Money freedom is the dream of a lot of people, but the dream is illuminated into reality hard. Compound interest looks be like simple, but actually difficulty is heavy. Make a person feel absurd is more, this society has many people to advertising the charm of compound interest, the intelligence quotient duty that relies on collection other people finally realized money freedom.
