I've said it before and sure as planets have moons I'll say it more - that tiddly wee penny has dropped again!
Ever taken the time to compound up your savings, or your earnings, or what you've spent on fags every year, or booze, or chasing after sex (if yoor a mister average), or just done a simple compounding calculation? If the answer is no, then this next posting may just raise an eyebrow..
50,000..., that's my magic number for this exercise.. Let's do this with some reasonable annual profit percentages, reasonable in the sense that I, Moximillion, as captain of this Enterprise reckon with constant learning and discipline I can earn this percentage, by trading shares in the realms of the Planet Stockmarket.. Also for the sake of keeping the math simple, lets assume this is my percentage gain after commissions, inflation loss, and nasty capital gains tax grrrrrrrr..
£50,000 annually compounded @ 15%..
*Yr (1) = £57,500
(2) = £66,125
(3) = £76,043
(4) = £87,450
(5) = £100,567
(6) = £115,653
(7) = £133,000
(8) = £152,951
(9) = £175,893
(10) = £202,277
(15) = £403,828
(20) = £810,232
Same deal, but with £10,000 added annually..
*Yr (1) = £57,500
(2) = £76,625
(3) = £100,768
(4) = £127,384
(5) = £157,991
(6) = £192,743
(7) = £233,668
(8) = £280,219
(9) = £333,752
(10) = £395,315
(15) = £872,657
(20) = £1,832,762
Pheeuw! that was mind-boggling sums, even with the use of a calculator, nevertheless, the proof is now there if any were needed, that in time, if one can stay alive active and astute then well, he could make it.. In the first example of a 15% compound, it would be *Yr-22 before I broke the million barrier, but in the second example of adding just an extra ten grand each staryear I would crack it in *Yr-16 but crucially, by only *Yr-6, stardate 1.4.2015, I'll have banked almost 200 grand to begin the construction of Enterprise.. But hey, this all sounds too bloody simple aye, crunch a few numbers, give it a time-span and voila - the captain becomes a millionaire!
Compounding works magic when numbers get bigger, be brave captain, invest logically, it's a long game..
No comments:
Post a Comment