The powerful quotes of Albert Einstein about Compound Interest;

1-Compound interest is the eighth wonder of the world. He who understands it earns it. He who doesn’t pay it.

2-Compound interest is the most powerful force in the universe.

3-Compound interest is the greatest mathematical discovery of all time.

4-Compounding is mankind’s greatest invention because it allows for the reliable systematic accumulation of wealth.

The majority are usually ignorant of how compound interest can work for them or against them. The great thing about compound interest is that if you let it work for you, you will find out that you actually need very little money to accumulate lots of wealth. If only more people knew how very little is needed to become wealthy, most of the “paycheck to paycheck” families could cut through all of the misinformation of spend, spend, spend and almost effortlessly become rich.

Financial author, Dave Ramsey said-“Wealth building is 80% behavior and 20% knowledge”. What to do isn’t the problem, doing it is!”  Some people find it so hard to change bad spending habits. You either have a low consumption or high consumption lifestyle and you need just l a little effort to turn a little bit of wasteful spending into meaningful savings and become wealthy. It is a lot easier to save a little now than being forced to working harder later.

Let me explain on how to play around with this compound rate calculator. Since the 20th century, the stock market has returned between 10% and 12% for the longtime overall average, so this is the assumption rate I used in this example.

Now, let’s start by simply forgoing that daily latte. At an average price of $5 per day, this amounts to about $100 per month. Type into the calculator $100 in Principal (1st box), then type $100 in Monthly Deposit (2nd box). Now, change the 3rd box to 12% and the 4th box to 40 years, your result will come out to $1,188,342!!! Now, do you still think that daily latte is worth over 1 million dollars? I wager, a large number of people don’t, especially, when they see how compound interest really can work for them.

Just maybe play around with the calculator, based on your time horizon to find out (if young) how very little effort and small amounts it takes to accumulate a lot of money to become rich. Maybe you procrastinated saving.  By using the calculator see how much is needed now to catch up and accumulate some of the same results.  By saving and investing small amounts today, you won’t be forced to save and invest large amounts in the future.

It’s not about having too much money at the end of the month because waiting for the end of the month to see what’s “left over”, most people are already aware that there is ALWAYS nothing “leftover” no matter the amount you earn.  It’s simply about being determined.  If someone continues to do the same financial things, they will continue to get the same results.

When you think you might be ready to start saving, please go over to my “Saving Money” article. I have listed out 40 ideas that will help get you started, saving little amounts by changing some basic simple spending habits you might have. I sure hope it will help you.

Two great little FREE savings Apps that “round up” your spending and put those little, painless amounts into a FDIC insured savings are Dobot and Qapital. They won’t get you to the million dollars but will help you painlessly put some money aside to maybe start investing or increasing your 401k contributions.

Dobot is a free financial savings app that transfers “small safe savings amounts” from your checking account to a FDIC insured savings account. You create your goals by creating an amount needed for maybe a wedding, vacation or retirement and when you will need it. Dobot will transfer small amounts to your savings account to have your established goal met. When you connect your bank account and complete one automatic transfer you are eligible to receive to receive a $5 new account bonus by using the $5 Bonus Referral Link, and after you enter your phone number or use this referral code; qxiya. Stop, start, change, boost or with drawl your savings amount whenever you wish. You may also share Dobot with friends and receive $5 for each friend using your link, by going to the “Gift Box” on your app. Your friends need to complete their first linked checking account transfer for you to receive each $5 bonus. The service is FREE for 30 days but then the charge is $1.99 monthly.

Qapital is similar to Dobot but with a lot more flexibility AND it’s FREE. After setting up your account and linked checking account you may create your own set of rules for transfers like rounding up your change every time you make a purchase with your card linked to your Qapital account. Small change adds up to big money. The average user saves $44 each month with this Rule. Actually saving my “rounded up” purchases save me an average $55 per month and I don’t miss any of this money at all! You may also set a daily, weekly or monthly transfer toward your Goals or thru the Qapital IFTTT channel you can turn almost anything into a way to save. Save with a hashtag or Instagram or by hitting your productivity or fitness goals. There are thousands of ways to save with Qapital and IFTTT. Unlike Dobot, there is NO monthly fee, NO annual fee, NO minimum balances.  Your savings are held in a Wells Fargo FDIC insured savings account and cash out and Transfer Money Back to Your Checking Account at Any Time in the App. Please note that you must join via a referral link to get a $5 new account bonus. Please visit our $5 Bonus Referral Link. Thank You!

OK maybe you want to start investing in stocks but with all the information out there I sure can see how anyone might be so confused and then they just give up. Hopefully, that won’t be you! Stash makes saving and investing so simple that they start you off with a FREE $5 when you go thru my link. You can start with just a $5 minimum account size and set up an automatic recurring investment to grow your Stash account. If it’s automatic you don’t see it and hopefully won’t miss it but the job of putting aside some money (maybe finally) gets done. You can learn to invest with confidence and chose 30+ investment themes which reflect your goals, beliefs, and interests.

When you sign up you will answer a series of questions to determine and then recommend stocks and ETF’s based on your answers and initial sign-up profile. Now you can invest in the stock market for an unheard of $5 minimum and know nothing about stocks and the stock market. Stash makes all the recommendations and personalized guidance you will need.

You can even receive another $5 for every referral you make if you choose, up to $100 per year and make referrals via Facebook, Twitter, direct email or text messages to friends you wish to join. Stash is totally free for the first 90 days and just $1 per month for accounts of less than $5,000 avoiding all those trading commissions brokerage companies charge. After account sizes of $5,000 it’s just .25% per year and withdrawals are always free.