There are three things I enjoy: movies, infographics, and making money! OK, I enjoy far more than those three things, but lets roll with just those three for today. Luckily for me, I came across an infographic from a company called Wherewithal, which handles a different form of investing based on your online shopping habits. It’s an interesting concept if you want to check it out and somewhat similar to Motif (investing based on themes). Since I love investing, increasing my net worth (tracked by Personal Capital), and shopping online, I think they have a cool model. Anyway, they created an infographic based on Star Wars and compound interest. What a combo!
Since the new Star Wars movie, Rogue One, was released last week, why not share this with you and I hope you use the force of compound interest. It’s definitely not on the dark side!
What is Compound Interest?
If you don’t know what compound interest is, then you came to the right place. It’s essentially a way for your money to make money and the process just continues. This is how you save for retirement and grow your wealth. Without compound interest, investing wouldn’t be as lucrative for the most of us. In the simplest terms, when you deposit money into a savings account, interest-bearing checking account, or an investment account, it starts to earn money. As that money earns money, the pot grows. Basically, your money starts working for you and earning it’s own money. You create an army of money, as Kevin O’Leary put it below:
Here’s how I think of my money – as soldiers – I send them out to war everyday. I want them to take prisoners and come home, so there’s more of them.
– Kevin O’Leary
The more you earn, the more the money grows and that process just gets better as time goes on. This is why so many, including myself, say you should work hard to save for retirement, even when in debt. It’s extremely hard to get back money based on the lack of compound interest. I even created a debt/saving allocation method which I used to keep my money earning when I was paying off my debt.
Related: How to turn $0.01 into $10 million
So, based on this notion of compound interest, Wherewithal created a Star Wars themed infographic based on the concept. I love it and it works perfectly as the new movie for “The Force Awakens” is out today. I figured I would give you two things to enjoy. You can check out the infographic below, but also look forward to watching this epic movie that’s been hyped for over a year. You can also get some ideas on how to save more money and start using compound interest. May I suggest Digit? Enjoy your day my friends and make sure to take advantage of compound interest. The force seems strong in you!
As noted by the infographic, compound interest can have a negative effect on your money as well. If you have a lot of consumer debt (like I used to), then the bank is earning compound interest on your debt and you end up paying them a ton in interest payments and very little on your principle. This is why paying off your consumer debt is so important and should be a focus of everyone.
Trust me, as someone who was in a good amount of debt, it’s nice to be on the other side. It’s nice to have your money working for you, instead of against you. I hope you can get inspired by this Star Wars graphic and that you’ll work hard to have compound interest working for you.
May the Force of Compound Interest be With You!
Are you planning on going to see the new Star Wars movie? Come on, be honest here. You don’t have to lie to me. If Star Wars is your thing and you also like money, then you’re at the right place.
I’ve Been Cable Free for 5 Years and Still Watch TV
While in debt, I cut cable and haven’t looked back. It’s easier than you think especially with new services out on the market. One of my favorites is Sling TV, which allows you to watch live TV on the internet. It’s awesome. Check out my Sling TV review.