Source: financial- compounding- effect.html
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Understand the Compounding Effect of Money

The compounding effect of money is extremely important when making
any financial decision. The compounding effect of money is often
overlooked or underestimated by people when making decisions. When
applied to all of your financial decisions, this effect is the KEY to
long-term success! To illustrate the compounding effect of money, let
me use some financial examples:

Suppose you had invested $1,000 today in a 5% savings account. In one
year, that account would be worth $1,050 [$1,000 + ($1,000 x 5%)],
yielding a $50 gain. However, in year two, that same initial
investment would be worth $1,102.50 [$1,000 + ($1,000 x 5%) + ($1,050
x 5%)], yielding a $52.50 gain. And in year three, the same $1,000
would be worth $1,157.63, yielding a $55.13 gain. By year ten, the
initial $1,000 investment would be worth $1,629 and by year 25 it
would be worth $3,386.

From looking at this example, you can see that investing $1,000 today
is much more valuable than investing $1,000 even a couple of years
from now. To accumulate wealth, you MUST use the time value of money
and the compounding effect of money to your advantage. Click here to
see how long it will take to save a million dollars.

This second example shows how the compounding effect can work against

Suppose you borrowed $20,000 to purchase a car and your auto loan was
at a 10% interest rate (for 5 years). Your monthly payments would be
$424.94. Because the $20,000 loan continues to compound over the life
of the loan, you actually pay $25,496.45 over the five-year period,
meaning that you’ve in essence paid $5,496.45 because you spent the
money before you had it. In fact, in your initial payments, the
interest alone will account for almost 40% of your monthly payments.
In this case, the bank or lender that gave you the loan uses the time
value of money to their advantage.

Now look at this scenario, where instead of making the $424.94 car
payment, you invest that payment at the same rate as what your car
loan was (granted it’s a little high for a savings rate, but not
unreasonable for other investments) . Now, instead of paying the bank,
you are actually earning interest and compounding the benefit
yourself. After one year you will have saved $5,340 and have earned
$240 in interest. After two years, you will have saved $11,239 and
have earned $1,039 in interest. By the third year, your investments
will be worth almost $18,000 and you will have earned $2,457 in
interest. By month 40, you will have enough money to purchase a
$20,000 car in cash!

So let’s weigh the differences between the two scenarios above. In
the first case you paid the bank $5,496 to borrow the money and in
the second case you earned $2,457 and could buy the car in cash after
just 40 months (just over 3 years)! The opportunity cost of the first
alternative versus the second alternative results in a net difference
of $7,953 (a $2,457 gain versus a $5,496 loss). That means that by
making a simple deferral decision (buying the car in 3 years versus
today), you can get ahead by almost $8,000!

Kick Ass Home Office Setups

September 16, 2011

Kick Ass Home Office Setups

who invent neck tie?

September 16, 2011

The answer as to who takes credit for inventing the necktie is debatable. It was long thought that Croatians mercenary soldiers fighting a 30 year religious war in Europe in the 17th century were the cause of this fashion accessory for men. However, about 40 years ago archaeologists discovered neckties around the necks of “Terracotta” army of soldiers that were buried with the fist Emperor of China to protect him in the after-life. As well in the beginning of the 2nd century Roman Soldier servants are depicted in painting and other art works wearing ties. Rome had forbid any cloth to be tied around a neck so back then there apparently was an anti necktie movement we are seeing today.

Funny & Bad Business Names

August 20, 2011

Funny & Bad Business Names
Bad business names are those that work on word play, puns of the job, current trends, and bad abbreviations (well business name abbreviations can be funny but not the most appropriate).

Although some business names can be funny, that doesn’t make them any good.

•Bologna Boutique
•Butt’s Real Estate
•Casket Basement
•Caviar Shack
•Chainsaw Cottage
•Cheese Closet
•Circus Pizza World
•Clam Fort
•Dick Wood Hardware
•Dirty Joe’s Crab Shack
•Dress Barn (women are already sensitive about their size. Barn- Cow- Fat Pig… Come on…)
•Futon Crawlspace
•Hair Foyer
•Hat Gazebo
•Girdle Garage
•Outerwear Outhouse
•Pizza Privy
•Salami Salon
•Sew What
•Software Shelf
•Supreme Fish Delight
•Taco Mezzanine
•Tofu Loft
•Tuxedo Hut
•Yogurt Yurt

Inappropriately Funny Business Names
Inappropriate business names are those that evoke a bad image. Well, not all the time, but when a business name evokes a neutral, or negative connotation, the business name is inappropriate.

In terms of an inappropriate business name, it’s not quite like inappropriate words, phrases, and behaviors from normal daily life. These business names are more or less those that are just inappropriate names for a business or that type of business.

•A Deli Named Desire Restaurant
•A Pane In The Glass
•Beauty & The Beach
•Buy & Large
•Buy The Pound
•Clear’s Looking At You Inc
•Copy Cat Reproductions
•Drain Surgeons
•Eat My Martini
•Frisky Business
•Fuk Hing Int. Development Co, LTD
•Hell On Reels Productions
•Get Crabs Here
•Get Plastered
•Meat on the Beach
•Murder Ink
•Nightie Night
•PMS General Trading Co.
•Ride Us- Used Cars
•Royal Flush Cesspool Sewer & Drain Cleaning
•Rock Bottom Industries
•Sexy Sleeps Motel
•S.T.D Contractors
•T’s Me
•That’s The Spirit Wines & Liquors
•The Stalk Market
•Wine Not
•You Bed Your Life

My office stress

June 12, 2011

Funny Office wellness

March 16, 2011

My MAC Computer

March 16, 2011


February 17, 2011