Albert Einstein wrote that “Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t, pays it!”
This post is all about a reference to a book written by Tony Robbins entitled Money: Master The Game. Now I’m going to start this post with an admission- I have not read this book!
I am an avid reader (or should it be listener) ever since I discovered the Audible collection of audiobooks. Previously, I would average 4 or 5 books a year. Now it is 3-4 books per month.
I am passionate about savings and investments, and generally read specifically around these topics. One book that came across my radar recently was this one by Tony Robbins. It sounded quite different from his other material and right in my field of interest. Unfortunately, there is no audio version yet on Audible. Being money conscious I am reluctant to ever pay more than $15 per book. Unfortunately it tipped the scales at $25 US dollars, which I hesitate to calculate in Aussie dollars at the moment.
Long story short, I found the PDF book supplement free on Audible oddly enough considering I can’t even find the book there.
The link is http://download.audible.com/product_related_docs/BK_SANS_006899.pdf if you would like to read the supplement.
Let me cut to the chase. There is a lot of fascinating diagrams and tables about funds, 401K contribution limits, average household expenditure and other stuff which didn’t make sense as I didn’t have the book.
Of the greatest interest to me, and possibly to you is the power of continuous saving and the effects of compounding mentioned on page 15.
The very top row stated that if you saved $5 per day, over 50 years and earned 10% per annum compound interest, you would have saved… [drumroll please]… $2,598,659 dollars!
I find that amazing! What a great lesson to teach our children.
As a personal reflection, this has made me value each day’s savings and to keep saving consistently. While I don’t want to forsake every enjoyment today for when I’m 80, I can forgo the daily latté to be financially free.
I’m really looking forward to reading/hearing the book. Hurry up Audible!