Suppose I told you that there was a simple way that any young person could retire with

over a million dollars. Do you know it already? Did they teach it to you in school? Did your

parents tell you about it? I doubt it. So it must be a secret. The secret formula that can help

any twenty year old retire comfortably is called the rule of 72. It has only two factors, which

have to be as large as possible. One factor is time. That is why, even though the rule of 72

works for every one, I focused on young people. Nobody can give themselves back years

that have past but young people have all that time before them. The other factor is rate of

interest. You need to get it close to 12% long term. That takes a little more explaining but

can be done by the average person. You don't have to be a financial genius. On these

pages we will give you some of the essential money facts that you need to know to become

financially independent.

over a million dollars. Do you know it already? Did they teach it to you in school? Did your

parents tell you about it? I doubt it. So it must be a secret. The secret formula that can help

any twenty year old retire comfortably is called the rule of 72. It has only two factors, which

have to be as large as possible. One factor is time. That is why, even though the rule of 72

works for every one, I focused on young people. Nobody can give themselves back years

that have past but young people have all that time before them. The other factor is rate of

interest. You need to get it close to 12% long term. That takes a little more explaining but

can be done by the average person. You don't have to be a financial genius. On these

pages we will give you some of the essential money facts that you need to know to become

financially independent.

On the this page, we begin to learn how money works. On the next page, we will learn how

to avoid the biggest obstacle to our financial success, the credit trap. On the third page we

will learn how to get save money. The final two pages talk about investing. All I can do on

these pages is give you a limited overview of some of the principles. To cover everything, I

would need to write several books. One author to check out is Jane Bryant Quinn. Some of

her books are "Making The Most of Your Money" and "Everyone's Money Book." A new

book by her makes it easy. it distills it down to the simple essentials. It's easy to read,

concise, just a little over two hundred pages but it contains all you need to know to handle

every financial situation in your life. How to save money for retirement, buying a house,

college or other important goals, How to get out of and stay out of debt. How to invest. How

to buy insurance. Establishing a financial safety net. It's all here in "Smart and Simple

Financial strategies for Busy People." If you want to build a sound financial future but don't

want to spend all your time managing your money, she tells you how to quickly put a few

simple principles into practice. Once you do this very little time will be needed to maintain

steady progress toward a sound financial future.

to avoid the biggest obstacle to our financial success, the credit trap. On the third page we

will learn how to get save money. The final two pages talk about investing. All I can do on

these pages is give you a limited overview of some of the principles. To cover everything, I

would need to write several books. One author to check out is Jane Bryant Quinn. Some of

her books are "Making The Most of Your Money" and "Everyone's Money Book." A new

book by her makes it easy. it distills it down to the simple essentials. It's easy to read,

concise, just a little over two hundred pages but it contains all you need to know to handle

every financial situation in your life. How to save money for retirement, buying a house,

college or other important goals, How to get out of and stay out of debt. How to invest. How

to buy insurance. Establishing a financial safety net. It's all here in "Smart and Simple

Financial strategies for Busy People." If you want to build a sound financial future but don't

want to spend all your time managing your money, she tells you how to quickly put a few

simple principles into practice. Once you do this very little time will be needed to maintain

steady progress toward a sound financial future.

Simple Facts |

There are a lot of good financial books and a lot of good financial information on the web.

There are experts whose knowledge goes far beyond mine. But a few years ago, when I

became licensed to sell insurance and mutual funds, I realized I had never even been

taught even the most basic facts about how money works. As you will see time is one of the

most important factors for financial success. We should all know how money works at least

by the time we graduate from high school. Yet they don't teach us. Here I will present the

simple facts of how money works and recommend places to learn more. Once I gained this

knowledge it was very helpful but the time that I did not have to apply it was very costly. I

hope that young people attracted to the music site, will come here and learn what they

need to know about money when it can do them the most good.

There are experts whose knowledge goes far beyond mine. But a few years ago, when I

became licensed to sell insurance and mutual funds, I realized I had never even been

taught even the most basic facts about how money works. As you will see time is one of the

most important factors for financial success. We should all know how money works at least

by the time we graduate from high school. Yet they don't teach us. Here I will present the

simple facts of how money works and recommend places to learn more. Once I gained this

knowledge it was very helpful but the time that I did not have to apply it was very costly. I

hope that young people attracted to the music site, will come here and learn what they

need to know about money when it can do them the most good.

Compound Interest |

How money grows is the most important knowledge that you must have if you want to

achieve financial freedom. When money is invested at compound interest, you don't just

earn interest on the original money. At set periods of time you get interest on the original

money plus all the interest it's earned. The number of times money is compounded in any

period is important. A 6% rate compounded monthly gives you more than 6% compounded

annually over the same time period. Suppose your parents had put $1000 away for you

some where and you didn't find about it till 48 years later. Compounded annually it would

be worth $16,393.87. Compounded monthly it would be worth 17,686.89, over $1000 more.

achieve financial freedom. When money is invested at compound interest, you don't just

earn interest on the original money. At set periods of time you get interest on the original

money plus all the interest it's earned. The number of times money is compounded in any

period is important. A 6% rate compounded monthly gives you more than 6% compounded

annually over the same time period. Suppose your parents had put $1000 away for you

some where and you didn't find about it till 48 years later. Compounded annually it would

be worth $16,393.87. Compounded monthly it would be worth 17,686.89, over $1000 more.

Rule Of 72 |

The amazing thing about the compounding example is not that there was a slight difference

between monthly and yearly compounding amount. The amazing thing is that in 48 years

the amount grew by over 16 times. We don't need a calculator to know much a fixed sum of

money will grow at different interest rates. There is a rule of thumb that can tell us called

the rule of 72. A fixed sum of compounded money grows approximately by the following

geometric progression. 2, 4, 8, 16, 32, 64, 128, 256, times and so on. You can see that

each number is the previous number multiplied by 2. If you divide 72 by the interest rate it

tells you how long in years the doubling period is. Dividing 72 by 6% give a 12 year

doubling period. That's four times in 48 years which gives the approximate value of

$16,000. That is pretty close to the actual calculated values in the previous paragraph.

between monthly and yearly compounding amount. The amazing thing is that in 48 years

the amount grew by over 16 times. We don't need a calculator to know much a fixed sum of

money will grow at different interest rates. There is a rule of thumb that can tell us called

the rule of 72. A fixed sum of compounded money grows approximately by the following

geometric progression. 2, 4, 8, 16, 32, 64, 128, 256, times and so on. You can see that

each number is the previous number multiplied by 2. If you divide 72 by the interest rate it

tells you how long in years the doubling period is. Dividing 72 by 6% give a 12 year

doubling period. That's four times in 48 years which gives the approximate value of

$16,000. That is pretty close to the actual calculated values in the previous paragraph.

If you divide 72 by 12% you get a six year doubling period. In 48 years your money

doubles 8 times to grow to an amazing $256,000. You saw previously that 6% gives you

$16,000. 72 divided by 3% gives a 24 year doubling period. Your money only doubles

twice in 48 years to grow to a measly $4000. It's hard to believe that $1000 dollars can

become a quarter million dollars in less than a life time. If a parent had invested it for their

child the day they were born in something returning 12%, they would only be 48. If

someone had invested it at that rate in their twenties, they would have their quarter million

by age 68.

doubles 8 times to grow to an amazing $256,000. You saw previously that 6% gives you

$16,000. 72 divided by 3% gives a 24 year doubling period. Your money only doubles

twice in 48 years to grow to a measly $4000. It's hard to believe that $1000 dollars can

become a quarter million dollars in less than a life time. If a parent had invested it for their

child the day they were born in something returning 12%, they would only be 48. If

someone had invested it at that rate in their twenties, they would have their quarter million

by age 68.

$1000 dollars at 3% interest in 48 years becomes $4000.

$1000 dollars at 6% interest in 48 years becomes $16,000.

$1000 dollars at 12% interest in 48 years becomes $256,000.

Getting 12%! |

Are there places to get 12% return on an investment? Over the short term no. But, with all

the ups and downs in the economy, including the great depression and the many

recessions, over a fifty year period there are investments that have returned 12% or

better.**Honest financial people have to tell you that past performance is no **

guarantee of future performance. In other words, history may not repeat itself.

Maybe fifty years from now, governments will collapse and there will be no viable economic

future. Maybe the world will end from global warming or be hit by an asteroid. We have to

trust that there will be a future and the economy will grow. One thing is certain. If you don't

save you will die broke. Second, Most people waste many $1000 in their life times. Why not

put a few of those $1000's to work for your future.

the ups and downs in the economy, including the great depression and the many

recessions, over a fifty year period there are investments that have returned 12% or

better.

guarantee of future performance. In other words, history may not repeat itself.

Maybe fifty years from now, governments will collapse and there will be no viable economic

future. Maybe the world will end from global warming or be hit by an asteroid. We have to

trust that there will be a future and the economy will grow. One thing is certain. If you don't

save you will die broke. Second, Most people waste many $1000 in their life times. Why not

put a few of those $1000's to work for your future.

Wasting Time! |

I will be showing you where you will have a shot at those higher rates of return. I can't give

you more time. Time is a key component of this wealth building formula. I'm hoping this

valuable information reaches those young enough to benefit from it .If you are in your

twenties, great! But don't forget people are living longer today. If you are forty, you could

live to be eighty or ninety. That's forty to fifty years. I will be showing you other ways to get

money that don't require as much time but don't waste this opportunity. Time is precious.

Use it or lose it. Start saving now.

you more time. Time is a key component of this wealth building formula. I'm hoping this

valuable information reaches those young enough to benefit from it .If you are in your

twenties, great! But don't forget people are living longer today. If you are forty, you could

live to be eighty or ninety. That's forty to fifty years. I will be showing you other ways to get

money that don't require as much time but don't waste this opportunity. Time is precious.

Use it or lose it. Start saving now.

Financial Independence |