Compound interest works both ways.
That is the reason everyone pretty much agrees that credit cards or anything with high interest rates is one of the worst things (assuming you do not pay your bill in full every month)
I donāt want to spark a debate about the benefits of cash back, insurance, convenience, delay of payment, refund capabilities etc etc
Or the counters to that, about how when you pay with credit you subconsciously buy more etc
Personally, I know what I want, so there is no āextraā shopping when I have a fixed list. I am not one of those people who goes into costco to get milk and eggs and comes out with a $300 BBQ setā¦ (mmmmm bbq)
But having interest charged and not pay it off is the worst form of compound interest.
I remember this girl who worked at a restaurant, at the time she got her $600 paycheck, and that night spent $90 on supper and drinksā¦
You might think nothing wrong with that, but when you are blindly spending money and constantly losing cell phone plans and face constant evictions maybe its time to end that ritual of spending a large % of your paycheck on food and drinks at a low end place for one nightā¦
The way I see gold and silver is a form of compound saving.
Well how? Itās not like it makes dividends that I can use to buy more goldā¦
Well, it is compounding in value in terms of dollarsā¦
Think about it, inflation destroys the value of fiat, gold is a hedge against inflation. So you can say if inflation is 4% a year, then your gold should probably go up around % that yearā¦ these kinds of gains compound..
Imagine buying gold at $800, hold till today and watch the price fluctuate a few hundred dollars over the months ā¦ thats a huge swing relative to your entry priceā¦
I see the same thing happening to silver soon
Believe it or not but even though its time for crypto to shine, I cant stop thinking about our precious metals :)
