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Earn Interest on Interest

Reap the benefits of compound growth.

Bryan Hirsch




To quote Albert Einstein on compound interest: “It is the greatest mathematical discovery of all time.”  In the financial world it is, without doubt, considered the eighth wonder of the world and, because of the time value of money, compound interest will always remain a true wonder.

Where money is concerned there are often unwritten rules which, provided we heed them, will allow us to reap the rewards. One of these rules is that you cannot compensate for, or replace the loss of compound growth in later years. During my many lectures to student groups I always place great emphasis on compound interest and the fact that one can never be too young to begin saving, in order to reap the benefits of this interest.

Multiply your wealth

Put simply, this growth mechanism of compounding adds interest to your capital from the moment you invest it and, thereafter, the powerful multiplying effect results in interest being earned on interest.

To highlight this, I use an example of R200 invested to age 65, which will escalate by 8% per annum (this means that in the 13th month the premium will increase from R200 to R216, in the 25th month from R216 to R233,28 and so on). I have also assumed that the fund will achieve a growth of 10%. In the table provided you will see the illustrative values.

It is quite frightening to see the difference that five years makes. By starting at the age of 35 rather than 30, you will have invested only R14 079 less but the value will be reduced by R828 368 over the remaining period of the investment. You are probably shaking your head in disbelief. This is the power of compound interest. It is very difficult to create wealth without employing this compounding effect and, hopefully, this example will encourage saving as soon as possible.

Retirement planning

We see the benefits of compound interest feature especially in the area of retirement planning. By not harnessing the power of compound interest in retirement planning, the difference a year or two makes can be detrimental to your retirement savings. By losing out on a couple of years of compound interest, many may actually have to delay retirement in order to make up for this ‘lost’ time.

Time is the most powerful asset when it comes to investing. The earlier you start investing, the more time you leave for the miracle of compound interest to take effect. The true glory of compound interest only shows with time. Set realistic goals and make a detailed plan of how to get there.

We always hear the phrase ‘time is money’. Well, when it comes to investing, time literally is money. By beginning to save as soon as possible you will increase the future value of your money by investing and gaining interest over a longer period of time. At the end of the day, my advice to all investors is to exercise patience, weather the storms of volatility and reap the benefit of the eighth wonder of the world, namely the awesome power of compound interest.

Personal Finance

10 Tips To Become A Millionaire This Year

Becoming a millionaire requires changing your mindset and implementing some changes.

Murray Newlands



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Becoming a millionaire may seem out of your reach, but it’s possible with the right attitude and guidance. The fact of the matter is your income can only grow as quickly as you do, so you need to change your mindset to achieve your goal of becoming a millionaire.

Once you have a millionaire mind, you can’t lose it, no matter what financial or business mistakes you make along the way. To get yourself there, you’re going to need some structure. To help you, I’ve outlined the top ten tips you should follow to become a millionaire this year.

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Personal Finance

If You Think These 5 Things, You’ll Never Get Rich By The Time You’re 30

Five common mistakes entrepreneurs make when starting a business and how to correct them.



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Last week, I had lunch with a millennial who wanted some advice about a business he’s starting. After the usual small talk, we got down to discussing his business plan. Within a short time, it was clear that his business idea was great, his plan for executing was fairly solid and he had gathered together a strong team to help him make it happen.

So far, so good. But, to be frank, this guy has no chance of being successful with his current mentality. What it takes to be rich (or successful in any measure) has a lot more to do with your mindset than your ideas and plans.

From the time we started in business at the ripe ages of six and seven, our Grandpa Joe taught my brother Matthew and me many lessons about the details of running a profitable business. Over the years, we learned about how to create a business plan; how to market our products and services; and how to take care of customers, vendors and employees. All this knowledge has been invaluable to us in creating and running successful businesses. But, what our grandfather taught us about attitude and mindset trumps all other lessons.

Without calling out the specific individual I spoke with recently, below are five “hypothetical” attitudes that will get you nowhere in your journey to success – and the attitudes that should replace them.

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Personal Finance

5 Habits That Lead To Millionaire Business Success

You need the right habits if you’re going to succeed.

Timothy Sykes




What do all millionaire businesspeople have in common? Well, a lot of things.

I found from a recent study that 80 percent of all millionaires still go to work every single day. They’re working people just like me. But, they have to keep themselves in work or it all grinds to a halt. So what are the habits you need to make your business a success?

1. Patience

Nothing is ever going to come easy. You can look at the likes of Steve Jobs and Bill Gates, as well as the other usual suspects, to realize that success didn’t come with their first venture. Many of them failed time and time again. It took patience for them to become successful.

I read an article recently about 36-year-old teacher Andrew Hallam who became a self-made millionaire on a teaching salary. But, in his spare time he invested smart and lived frugally.

It proves you don’t have to inherit lots of money or become an instant success to make a millionaire business.

Related: 4 Ways To Become A Millionaire Even When You Start With Little

2. Dedication

You have to be dedicated to your craft if you’re going to become successful. Going back to Bill Gates again, he started his business in the back of his garage. Now that’s dedication.

It’s what I tell all my students. If they’re not dedicated to this, then they should leave. You need to be able to push through the barren periods if you’re going to reach the oasis of success.

3. Ambition and big dreams

Have you ever heard the quote, “Shoot for the moon. Even if you miss you’ll land among the stars”?

I take that to heart because even if you aim to become a billionaire and miss you still might be a millionaire many times over. Take the Wright Brothers as an example. Not content with creating a successful glider in 1902 they went on to create the world’s first airplane in 1903, making four brief flights in Kitty Hawk. It demonstrates the importance of dreaming big because you never know what you might achieve.

Related: 12 Millionaire Habits To Start Making Serious Money Soon And Build Wealth In A Hurry

4. Learn from mistakes

Every good businessperson will mess something up. It’s inevitable. What’s important is how you learn from your mistakes over time. Do you adapt after making your mistakes?

Millionaire businesspeople always set some time aside to reflect. Then they create a plan of action for ensuring that it doesn’t happen again. Most failed businesspeople put it down to “bad luck.”

5. Focus on niches

This important! Try to take over a whole industry at once and you’ll inevitably get swallowed up by the competition. Start small and control your own niche before moving into another niche. When you master your small area, you can push on and expand.

Related: 21 Choices Millionaires Make That You Aren’t Making But Should Be

You’ll be amazed at how much easier it is to expand after you master your own niche/audience first.

Do you have what it takes? That’s the question I always ask novice businesspeople. You need a plan and you need the right habits if you’re going to succeed.

This article was originally posted here on

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