Have you ever seen the Grand Canyon?

What about the Pyramids of Egypt?

Or the Great Wall of China?

These are often referred to as Wonders of the World.

__Wealthy Baron Rothschild was once asked if he had seen the seven wonders of the world. He responded, “No, but I do know the advantages of the eighth wonder of the world—compound interest.”__

And Albert Einstein went so far to say that the greatest mathematical discovery of all time wasn’t E=MC2—it was compounding.

Who do you think would end up with more by age 65? A 21-year-old who started saving $1,000 a year for only the next eight years, or a 29-year-old who saved $1,000 a year for the next 37 years?

Is it the 21-year-old who saved a total of $8,000? Or is it the 29-year-old who saved $37,000?

Compounding can be your friend! Surprisingly, the person who saved only $8,000 accumulated more. Because he started *earlier*, he ended up with $64,000 more.

__Understanding compounding is important. There are three variables to it: the length of time you save, the amount you save, and the percentage rate you earn while you save.__

We’ve already seen that the earlier you start the better.

As for the second variable, the amount you can save, to save $1,000 a year means you need to save an average of $2.74 a day. The key is to save consistently.

As for the third variable, the rate of return you earn, if you invest $1,000 a year for 40 years and earn 6%, you’ll end up with $164,000. If you earn 8%, you’ll have $280,000!

__You don’t have to be a world traveler to see the entire list of the Wonders of the World. Compounding is the one Wonder you can see from wherever you are!__

Compass helps people worldwide to know Christ more intimately in one of the most personal arenas of life, finances.

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Even though Baron Rothschild had never seen the seven wonders of the world, he knew the power of the eighth wonder…

SAVING | Jun 12, 2023

The 8th Wonder

By: Howard Dayton

Compass helps people worldwide to know Christ more intimately in one of the most personal arenas of life, finances.

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