Compound interest... from little things big things grow.

By
Published on 
Share this post
Compound Interest

Forget about location, location, location being the key to a good investment outcome. One of the most important ingredients to financial planning success is being regular, regular, regular!A regular savings plan can turn small amounts of money into a sum that can take you closer to your dreams much faster. All that’s needed is time and discipline.For example, let’s see what happens to an investment starting with just $100 and adding $100 each week from your regular income. The table below shows what the investment value would reach after five years and up to thirty years. In this example, we have assumed that the investment pays a return of 6{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} per annum (paid quarterly) and that this return is reinvested.

compound interest

The results show that a regular savings habit can turn small sacrifices into real outcomes. Demonstrating the effect of time and compounding returns on the value of your investment.The trick is to start soon.Everyone’s ability to save is different, but even if you can’t save $100 every week, the above figures are still worthy of your attention. For example, if you can save $50 per week simply halve the results. Conversely, if your savings capacity is higher, multiply the results.Want more information?SMSF Retirement PlanningInvesting for Income when Interest Rates are LowWhy it Pays to Understand the Six Stages of Financial Planning

Invite us along on your journey, you will be amazed how far our expert guidance can take you. Contact us on 1300 27 28 29 or click below to speak with a RJS Wealth Management professional or:

Book an appointment!Email:info@rjswm.com.auThis blog has been prepared by RJS Wealth Management Pty. Ltd. ABN 24 156 207 126. RJS Wealth Management Pty. Ltd. is a Corporate Authorised Representative (No. 438158) of Modoras Pty. Ltd. ABN 86 068 034 908 an Australian Financial Services and Credit Licensee (Number 233209). The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals personal circumstances have been taken into consideration for the preparation of this material. Any individual making a decision to buy, sell or hold any particular financial product should make their own assessment taking into account their own particular circumstances. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Pty Ltd recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this fact sheet can change without notice. Modoras Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication.

Last modifed

Contact us

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
.w-richtext ol, .w-richtext ul { overflow: visible; }