Investing

Question: Would you rather have a million dollars now or take a penny now and double the amount for 30 days?
 
As expected, 90% of people chose the million dollars now option. I would have made this choice myself a few years ago. But this would have been the poorer choice, because you would have shortchanged yourself by over $4 Million at month-end. Don’t believe me? Look at penny table calculation on the right. The simple act of doubling your previous day’s investment can rapidly reap huge rewards thanks to the powerful concept known as compounding .

Now a 100% return every day is highly unlikely, but the principle of compounding holds true for even smaller returns (though it will take longer than a month to make your fortune). This is why compounding is a core aspect of good personal finance and the reason why the rich get richer. As outlined in a Kiplinger , when you're young, you have an asset money can't buy: TIME. Start saving now and turn pocket change into riches. Compound interest has been called the eighth wonder of the world. And with good reason. It magically turns a little bit of money, invested wisely, into a whole lot of cash. Even Albert Einstein is said to have called it one of the greatest mathematical concepts of our time. Read More »

You don't have to have an MBA to do well in the stock market. Instead, just look to see which companies are pampering people's pooches.

Americans have been scrimping to get by for the last several months: Cutting corners, clipping coupons, brown-bagging lunch, and so on. American pets, however, have only seen their standard of living increase. Despite the recession, it turns out that Americans have increased their spending on their
pets, from $43.3 billion last year to $45.4 billion this year, according to the American Pets Association. Read More »