You know last week we talked about money saving challenges, and if you missed the show (Your Safe Money Show) go to the website yoursafemoneyshow.com and listen at the podcast page. Anyway we talked about different ways to save money and I wanted to touch on compound interest today, which is one of the best ways to save. So, what is compounding interest? Compounding is the process where interest is credited to an existing principal amount as well as to interest already paid.
Compounding is interest on interest—so you can magnify returns with interest over time, the so-called "miracle of compounding."
When banks or financial institutions credit compound interest, they will use a compounding period such as annual, monthly, or daily. My safe money strategies use compounded interest. You also get a reasonable rate of return. When the market rises you get the gains but when it falls you stay the same. Your principle is protected. And if you are looking for lifetime income this strategy is for you. If you'd like more information call 320-679-5183 or go to yoursafemoneyshow.com.
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