The Power of Compounding
Time Value of Money at 6%
Interest
|
|
|
Age start - 22
Age quit - 30
|
Age start - 31
Age quit - 65
|
Amount
invested
each year
|
$2,000
|
$2,000
|
|
Total Invested
|
$18,000
|
$70,000
|
Value of
investment at
age 65
|
$579,471
|
$470,249
|
When you invest, you put your money to work for you!! Compounding is when you leave the interest earned on your savings in your account, and the interest earns interest...the interest on interest earns more interest and soon your money really piles up.
Look at the chart on the right to see how powerful compounding can be. In the first column, Mary saved $2,000 each year for 9 years starting when she was 22 and stopping when she was 30. The compounding interest increased the $18,000 investment to more than a half million dollars by the time she was 65.
Even though Phil, who started at a much older stage, invests more of his money, the one who starts first has a big head start since that money started earning interest right away and that interest earned more interest. Even though Mary stopped adding more money a long time before Phil, the interest grew over the next 35 years.
Credit Card Terminals
A credit card terminal is a financial device that allows financial, point-of-sale transactions with a debit card or a credit card.
Credit Card Terminals: Factors to Consider When Purchasing a Terminal
1. If you are going to have a business, you are going to require one, or more, credit card terminals. It is that simple. No terminal, no business.
Tip: Visit Staples, Office Max, Costco or any bank or credit card terminal company to compare prices.
2. Determine the number of locations you will have. Typically you can receive favorable pricing by having all your store locations on one merchant account. This will save your company money.
Tip: Research acquiring a multiple merchant account terminal if you own and operate more than one business.
3. Determine the best way to connect your credit card terminal to your merchant account. The options include a phone line, using an IP connection via the internet or even buying a wireless credit card terminal. Third party solutions can help. If you are conducting business online, examine using PayPal.com to save money because you don't to have to purchase a terminal.
4. Be sure to buy a data entry key pad to accept debit card PIN numbers. If you don't have a key pad on your credit card terminal, you can only accept check cards.
Tip: Each credit card terminal offers different banking functions. Thus, the prices of a terminal vary, too. For example, if you need a printer that costs more than a terminal without a printer.
Where is the Best Place to
Save Money_
|
|
Where to Save
|
Advantages
|
|
Commercial Bank
|
Earns interest; money insured
against lost
|
|
Savings Bank
|
|
Credit Union
|
|
Where Not to Save
|
Disadvantages
|
|
"Piggy Bank"
|
No interest,
No insurance,
Can be found and
used by others
|
|
Sock drawer
|
