November 30, 2009
If you were offered a 28 day job that would pay you one penny for your first day of work—then double that each day there after. Would you accept that job?
It might surprise you to learn that on the 28th day, you would earn $1,342,177.28!
That’s the power of compound interest! And it’s why Albert Einstein called it the most powerful force on earth. However, it can work both for you and against you.
Banks and financial institutions try to make this work against you—and for them! And, considering that over 95% of people will retire dependent on others, I think they are doing a pretty good job of it.
In fact, J. Reuben Clark depicted the negative power of interest quite well when he said:
“Interest never sleeps nor sickens nor dies; it never goes to the hospital; it works on Sundays and holidays; it never takes a vacation; it never visits nor travels; it takes no pleasure; it is never laid off work nor discharged from employment; it never works on reduced hours. . . . Once in debt, interest is your companion every minute of the day and night; you cannot shun it or slip away from it; you cannot dismiss it; it yields neither to entreaties, demands, or orders; and whenever you get in its way or cross its course or fail to meet its demands, it crushes you.”
So, which side of Compound Interest do you want to be on?
By “Becoming Your Own Banker”, you put the power of compound interest on your side.