Here we have two people, Tom and Bob, both aged 20. Tom is the cautious sort, always putting a bit of cash aside for a rainy day, while Bob tends to be less careful with his money, preferring to spend it all on having fun rather than putting it into savings. Regardless of which of these attitudes is philosophically sensible, we can see from the table whose attitude is likely to pay off financially in the long term.

Tom starts paying £1,000 into a savings account each year from the age of 20 (maybe using an ISA or a pension plan or something similar). We’ve assumed an interest rate of 5% for this example, so each £1,000 that Tom pays in will generate £50 of interest per year, which he then reinvests back into the account, i.e. he’s compounding the interest. Tom does this for 10 years, then stops paying money in, perhaps deciding that after being rather boring in his 20s, he really ought to get out there and live a little before he gets too old.

Bob, meanwhile, has blown most of his earnings on expensive wine, fast cars, unwise property deals and the sort of women your mother warned you about. Reaching the end of his 20s and feeling rather haggard, Bob decides that he too should start saving for his dotage. From the age of 30 he starts to put away £1,000 per year, also making 5% per year. He is also compounding the interest.

But a strange thing happens. Even though Tom stopped paying in money once he reached 30, Tom’s pot continues to grow thanks to the power of compound interest. After ten years of paying money in, when they’re both 40, the value of Bob’s pot is still only about 60% of Tom’s. In fact it takes Bob a total of 20 years of contributions to finally build his pot up to the same size as Tom’s, and he’s paid in a total of £20,000 to do so rather than Tom’s total outlay of £10,000.

This is the true power of compounding: the earlier you start saving, the faster your savings will grow. Once you understand this, you’ll be in a much better position to make the most of your money.

So start as early as you can, preferable when 18 or younger.

Watch out for smooth price action

Notice the smooth price action in this chart esp the higher lows each day on the upwards trending weeks. Always look for higher lows in a bull market and lower highers in a bear market. Take care.

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Warren Buffett speaks to you

Warren Buffett's investing strategy is a ray of sunshine in a darkened world. Listen & chew it over. The look around and act on it.

Makes my blood boil

Some Deep value investor trying to convince me (an accountant) you can trust the Porkie Pies (lies) written within today's Balance sheets. The financial carnage of recent years proves NO ONE can trust such rubbish esp so called eXperts who are e...mpty headed. Why is it I & and few others knew between Dec 2006 to March 2007 to get ready to exit the stock markets while the RA RA boys on TV telling investors to buy.

Charts do not lie but greedy CEO'S and fund managers do, to hide their buying and selling.

Freedom to life your live as you wish it

Taking a stock market course... What does it achieve really?

Well, Ask yourself if you had the money to do whatever you wanted, What would you do?

Look after the kids, Travel the world, Become an artist, musician or retire!

These are the sort of things that solid stock market investing will utimately allow you to do.

Effort at the front end and experience will allow you to step by step acheive your dreams.

So start thinking about your dreams and how to acheive them, write them down...NOW!

We know that you can do it. WHY? Because so many have already done it or are on their way to

acheiving their dreams right now, you can too.

Finding rapid price gains before stock market opens

Explosive price gain stocks research is designed to find stocks BEFORE the stock market opens that have potential price gains today, now ;-)

After reading various investing methods this week, they all have one thing in common...they all take TOO LONG TO MAKE MONEY...buy & pray ;-)

Explosive price gain stock...ESL...Esterline...Investors made $1300 in after hours trading, you can too...http://stores.lulu.com/dalby :-)

Missed out on the recent 50% market rise

Don't Worry if you did, it isn't your fault. With all the noisy confusion and opinions to buy or sell, it's easy to miss such opportunities because you haven't been trained to spot profitable investing opportunites using simple techniques that put you ahead of the game and the professionals.

PHD Method gives you the simple tools to be ahead of the game.

For example...BP discover HUGE oil field...

Ian who uses the PHD Method spotted BP PLC price turn and bought at 485p, today BP are at
541p, thanks to PHD Method Ian's return is already 12% within 3 weeks.