Saving your money is the key to getting started in investing. Don't underestimate the phrase "a penny saved is a penny earned."
Watch what happens in this exercise:
Given a choice of being paid $10,000 for 30 days of work, or one cent on the first day that is doubled each day over the 30 days of work, what would you choose?
While $10,000 is a great deal of money, watch what happens when your money doubles daily, starting with just a penny:
| Day |
Pay |
Day |
Pay |
| 1 |
$0.01 |
16 |
$327.68 |
| 2 |
$0.02 |
17 |
$655.36 |
| 3 |
$0.04 |
18 |
$1,310.72 |
| 4 |
$0.08 |
19 |
$2,621.44 |
| 5 |
$0.16 |
20 |
$5,242.88 |
| 6 |
$0.32 |
21 |
$10,485.76 |
| 7 |
$0.64 |
22 |
$20,971.52 |
| 8 |
$1.28 |
23 |
$41,943.04 |
| 9 |
$2.56 |
24 |
$83,886.08 |
| 10 |
$5.12 |
25 |
167,772.16 |
| 11 |
$10.24 |
26 |
335,544.32 |
| 12 |
$20.48 |
27 |
$671,088.64 |
| 13 |
$40.96 |
28 |
$1,342,177.28 |
| 14 |
$81.92 |
29 |
$2,684,354.56 |
| 15 |
$163.84 |
30 |
$5,368,709.12 |
If you chose the $10,000, you're probably rethinking your decision!
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