The Power of Money & Time

Remember - when it comes to money and accumulating more of it TIME is your best friend. Do not confuse this with timing - trying to time when to get in and out of the stock market just doesn't work. No one can predict where the market will be tomorrow. Warren Buffett - the world's greatest investor said, "Nobody succeeds long-term in the stock market jumping from flower to flower." "The important thing is to be in the right companies. It would be wonderful to be in and out at the right time, but nobody can do that."

With that said how can we use time to our advantage? Here's one simple example:

THE $58,000 CUP OF COFFEE

If you took $1.00 each working day that you would normally spend on a cup of coffee and invest it over 30 years at a 12% rate of return, you would end of with nearly $58,000!! - Gives you something to think about doesn't it!

If you just can't give up that cup of coffee on the way to work look for other ways to find that dollar - over time it will definitely GROW! Or you can take your coffee with you from home - remember it also takes time to stop and get that cup of coffee - so you're saving time and money. Again, time is money!!

Another Way To See How Money Grows

Small amounts of money can grow tremendously through the power of compounding interest. If you invest $20.00 a week at 10% (the typical stock market return for years) for 30 years you would have a little over $198,000! Note - this does not take taxes into account. So if you put your $20.00 in an IRA or 401K you wouldn't have to worry about the taxes.

Try out the compound interest calculator and
see how your money will grow!

PLACES TO FIND MONEY

Need money to start investing? Here's where you might be able to find some.

Have only one credit card and pay it off in full each month. You don't want to pay 20% interest - you want to earn it.
Try and eliminate magazine subscriptions. Use the library.
Cut down on eating out.
Don't buy extended warranties - generally they aren't worth it.
Buy used cars - cars depreciate a tremendous amount the first year.
Keep track of every penny you spend for a month - I can guarantee you'll find an extra $25 that you just "fiddled" away that you could use to invest.

A Place You Might Find Extra Money

Make sure you can't earn a higher rate of return simply by investing in your own debt! For example, if you have a credit card balance that's costing you 19% per year, and you increase your payment, you will get a guaranteed 19% return on your investment. What's more, your earnings will be tax-free! So use this JavaScript Calculator to see how much you could be earning if you increased your payment on any one of your debts.

Enter the current payment terms for any one of your outstanding debts, then enter an amount you could comfortably add to the payment. Finally, click on "Compute" to see what the return on your investment will be.

Principal Balance Owed	Annual Interest Rate	Current Monthly Payment	Additional Monthly Payment	Interest Savings	Annual Return on Investment

THE POWER OF TIME AND MONEY

With that said how can we use time to our advantage? Here's one simple example:

THE $58,000 CUP OF COFFEE

If you took $1.00 each working day that you would normally spend on a cup of coffee and invest it over 30 years at a 12% rate of return, you would end of with nearly $58,000!! - Gives you something to think about doesn't it!

PLACES TO FIND MONEY

Need money to start investing? Here's where you might be able to find some.

Have only one credit card and pay it off in full each month. You don't want to pay 20% interest - you want to earn it.

Try and eliminate magazine subscriptions. Use the library.

Cut down on eating out.

Don't buy extended warranties - generally they aren't worth it.

Buy used cars - cars depreciate a tremendous amount the first year.

Keep track of every penny you spend for a month - I can guarantee you'll find an extra $25 that you just "fiddled" away that you could use to invest.