Who remembers the fable of compounding interest?

Community Money Management
#1

When the inventor of the game showed it to the emperor of India, the emperor was so impressed by the new game, that he said to the man

" Name your reward! "

The man responded,

" Oh emperor, my wishes are simple. I only wish for this. Give me one grain of rice for the first square of the chessboard, two grains for the next square, four for the next, eight for the next and so on for all 64 squares, with each square having double the number of grains as the square before. "

The emperor agreed, amazed that the man had asked for such a small reward - or so he thought. After a week, his treasurer came back and informed him that the reward would add up to an astronomical sum, far greater than all the rice that could conceivably be produced in many many centuries!..

What awesome tales of compounding interest do you have from your own life?

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Setting Financial Goals
#2

Just wanna leave Mr.Einstein’s thoughts about compound interest to here :raised_hands:
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#3

Einstein-quote1:joy:

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#4

if I gave you 1 pence on the first day of the month, 2 pence on the second day, Then I doubled it to 4 pennies on the third day, and doubled it again to 8 pennies on the fourth day, and so on until the end of the month. how much money would you have accumulated at the end of the month?” :thinking:

Answer? 2.1 billion pennies. That’s the magic of compound interest :smiley:

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#5

Haha we should pick one of us from the Pynk community and start a meme that assigns all kinds of intelligent quotes to them. Starting with this one.

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#6

Two of my favourite quotes. Einstein’s quote has nothing to do with money , but I feel it’s important to understand that we have all been programmed ,via state or private education, people farms (schools and the office) to think and behave in a certain way from birth… This can be the biggest impedance to wealth preservation.

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Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this. –Dave Ramsey

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#7

What is compound interest and how can I benefit from it? :thinking:

The concept of compounding is arguably the most underrated power in the world.

We explore in our new blog post :point_down:

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#8

I think it’s definitely the most undervalued and misunderstood.

Great Blog by the way! Hope everyone else enjoyed.

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#9

And quite an important valuable lesson.

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