Are you struggling to save and grow your finances? What if I tell you I have a “magic penny” formula that can double your money in 31 days? Sounds interesting right?
Most people haven’t heard of the magic penny before. How about your one penny turns into a million. Yes, of course, you can double your money easily by following just some steps and investing your money first. Just think about this: If you double a penny each day for 31 days, you end up with £10.7 million.
You can be confused about how you can invest first before saving anything. But wait, we will guide you all through this to achieve and save as many dollars as you want through compound interest.
Albert Einstein once said, “Compound interest is the eighth wonder of the world. He who understands it earns it; he who doesn’t pay it.
Most people can’t understand and learn financial literacy and management. They end up trapped in credit card debts all the time through poor knowledge of managing their finances.
What is Compound Interest?
Compound interest is the interest when you deposit money into a savings account, or an investment account, it starts to earn money. In simple terms, If you put £10,000 in an account and gain a 5% interest, then after one year, you’d have over £500 of interest earnings. In about two years this money will be doubled to £1000 and in three years you will gather over £1600 interest money. Isn’t it simple? You just have to put money in a compound interest-earning account and not spend it, your money will be doubled in the coming years. Even if you earn £500 of interest in the first year then your second year’s interest will be calculated according to the amount of £10,500 not your original amount of £10,000. This is the magic of Compound interest.
How to make this Magic Penny formula work for you?
To make this compound interest formula work for you and increase your money, follow the following steps:
1- Invest Earlier: Most people would make the mistake of investing very late, which results in gaining little interest over the years. The sooner you start investing and saving the better. It’s simple if you start investing late then the interest that you will gain will be less than the interest that you have gained if you have started many years before.
2- Invest Regularly: Make sure to invest regularly in your saving account to reap more benefits of compound interest.
3- Be Patient: Patience is the key! Be patient to receive more and see the magic of compound interest. Invest at a young age to see the giant amount of dollars in your account when you reach your retirement age.
4- Don’t Shy To Invest Even A Little Amount: Most of you would think that investing only £100 will not get us any profit. But let me tell you one thing that these £100 can go a long way in benefitting you. Just do the maths. Investing only £100 can benefit you so many £ at the end of the year. Even the small amounts of investment add up quickly over time.
How to Save Money To Implement The Magic Penny Formula?
You must think about how you can save a handsome or little amount of money to invest in Compound Interest. Here are some simple tips shared that can help you to cut unnecessary expenditures and save money to invest.
1- Make A List: This is the first step in saving money. One should make a list of his expenses and see which things are easy to cut out from your daily life.
2- Reduce Your Energy Costs: You can also reduce your electricity bill by changing regular light bulbs to energy-saving bulbs. This can really help you save many dollars.
3- Establish Your Budget: One must decide on a weekly or monthly budget and arrange your expenses according to that. Deciding on a fixed budget will really help you stay within your budget limit and save so much money weekly or monthly.
4- Cut The Unnecessary Subscriptions And Cable: Cable and unnecessary subscriptions take a lot of money. You can change your cable package or also switch to another cheaper cable provider. Subscribe to those packages that you really use.