Money Matters: Compounding Interest @757

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(Kristen) Welcome to Money Matters at 757 with Justin Chastain, and, Justin, today we are talking about how to make our money work for us. That’s something we all want, so can you give us a good example?

(Justin) Yes, so, exactly. So, the biggest thing you can do with your money is have it compound. So, that means giving your money more time, and you do not need to start out with a lot of money originally. You just don’t. So, if you took a basic investment of $500, and you invested $500 every single month for 25 years, and you allow that money to compound just annually, in 25 years you would have $286,000. While your original investment, the money you put in, is $150 [thousand]. So, again, compounding interest is your best friend, but time is more important than your dollar.

(Kristen) Yeah, a lot of people right now, you need to learn to be patient, right?

(Justin) That’s exactly right.

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