Our Mission: Spread the word about how a few very simple mathematical principles can be applied to achieve a powerful accumulation of wealth over a lifetime. The combination of savings and extended time lead to staggering and life-changing results. It is our hope that these articles and tools resonate with young and old alike to prepare for a secure, comfortable, or even wealthy retirement.

Compound Interest vs. Simple Interest

Simple Interest

I'm going to take you back to math class for just a brief moment... but stay with me here! If you get this, you will understand the foundation of what could lead to life-changing wealth for you!

Consider that you loan $100 to someone for one year. You are basically giving up your use of the money for an entire year, so you're not going to do that for free!

In consideration of your sacrifice, you charge 7% interest, yielding $7 at year's end. With the return of the $100 principle, you'll have a total of $107 in your pocket.

Compounding Rate Comparison

Compare the performance of three different interest rates using the interactive chart below. Fill out the form underneath the graph to see your own values.




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A Student Loan's Effect on Lifetime Wealth

Scenario 1: Take Out a Student Loan

The effect of compounding can be felt in the growth of a nest egg or the balance of a debt. See the first graph below during the age of 18 to 23. During this period, the fictional student is attending school, borrowing $25,000 per year for tuition and living expenses.

Effect of a Student Loan on Lifetime Wealth

Free Credit Report - Stop Identity Theft

Do NOT pay to check your credit report from the big three credit bureaus, when the government has dictated that you can get a copy of your credit report for free once per year from Equifax, TransUnion, and Experian.

Heavily advertised services such as freecreditreport.com are not in fact free, because you have to sign up for their monthly "Triple Advantage" paid service before you get your "free" report.

No, that doesn't sound "free" to me either, and I'm surprised that the FTC lets them continue using such a misleading website name given their terms.

Contribute to your 401K, Roth, or SIMPLE IRA.

What is better than compounding growth to make you wealthy? Tax-deferred compounding!

Why? Just take a look at the chart below. It shows 2 scenarios... One is $100 saved and growing in a tax-deferred account like an IRA or 401k, and the same $100 growing in a taxable account.

Effect of Pre-tax Compounding

Why the dramatic difference?

Rule of 72

Here's a handy way to figure out how long your investment will take to double in value. It is called the Rule of 72.