Education is the first step to making well-planned decisions regarding your wealth management.
My grandmother was a pivotal mentor for me in finance. I will never forget when she explained the compound interest formula to me. Grandma taught me the difference between working for money and having money work for me. After our first conversation on the matter, I started my IRA, a decision that would forever change my life. Check out this handy chart that explains how compound interest affects your retirement basket. More detail is also explained in Chapter 2 of the book Failure Is Not an Option.
This chart illustrates the unexpected yet astonishing result of doubling an initial penny every day. After just 30 days, you would wind up with over five million dollars. This is the power of compounding. Note that in the last six days, your assets jump from $167,772 to $5,368,709. That is why it is crucial to start planning and investing early in life. View the chart here. More detail is also explained in Chapter 9 of the book Failure Is Not an Option.