Les intérêts composés.Compound interests.

Les intérêts composés étaient considérés comme la plus grande force de l’Univers, par Albert Einstein. C’est une force que chaque particulier peut mettre de son côté.

Deux personnes investissent 150 euros par mois. L’une commence à 25 ans et arrête à 35 ans. L’autre commence à 35 ans et continue jusqu’à sa retraite, à 65 ans. Contre toute attente, avec le même taux d’intérêt, c’est la personne qui a épargné de 25 à 35 ans qui aura le capital le plus important à l’arrivée (voir calcul ci-dessous).

Les intérêts composés, c’est ça. Pourquoi convient-il de mettre cette force de son côté le plus tôt possible.

Compound interests were considered the greatest strength of the Universe, by Albert Einstein. It is a force that every individual can put on his side.

Two people invest 150 Euros a month. One starts at age 25 and stops at age 35. The other begins at age 35 and continues until retirement at age 65. Against all expectations, with the same interest rate, the person who saved from 25 to 35 years will have the biggest capital on arrival (see calculation below).

That is compound interest.

The operation is very simple and ultra accessible. Practice, on the other hand, requires discipline. The financial results are myristic: just let time take its action.

Thus, if you place your money at 26% per year, the amount you have placed doubles every three years. A placement of one thousand Euros today will give 1 million Euros in thirty years (= I place thousand Euros for 35 years, I will have a million at 65 years). You do not believe me? Do the calculation (1,000 become 1,260 which produce in their turn 10% and thus become 1.587,6, which become 2,000 and so on). For information, placed at 15%, the same amount doubles every 5 years.

With compound interest, time is the ally of the saver and, at a time when European social security is organized as a gigantic Ponzi chain, put aside as early as possible.

And, precisely, why as soon as possible?