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Crazy Numbers - Compound Interest - Hard Money Bankers
Warren Buffett believes that compound interest is one of the most significant factors impacting money growth in today's financial environment. In his biography the book discusses how when Warren Buffett spends $1.00 today, he actually sees it as spending $10.00. He sees it this way because of the return he knows he will make on that money over the next 10 years. People call him cheap, but if you believes that going to dinner at a nice restaurant was actually going to cost you $1000.00 instead of $100.00, I bet you would think twice about eating out. The reason he looks at money with this multiplier has a lot to do with his view on compound interest. If you take a simple example of putting $1000 into an account every year for 10 years and the money returns an average rate of 10% per year, then you will have more than $20,000 in 10 years. That is a significant increase for putting your money to work for you.
Ian Walsh215.839.3271
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