Amanda Stanhaus

Tag: compound interest

Compound Interest

Think about how a snowball rolling down a hill gains snow. So too, can $$ grow exponentially. The initial investment is increased by an interest payment, which increases the amount invested, which increases the subsequent interest payments.

(Originally published on Amanda Stanhaus’s financial literacy vocab blog: XO, Bettie Vocab.)

 

Modern Money Management

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Meet the frugal and fabulous Bettie – just another quarterlette out there enjoying her life and trying to make responsible financial choices in the process.  Her mission is to help other women wise up when it comes to their finances, and we’re thrilled to have her guest posting here. Join Bettie’s frugal and fabulous journey at her blog, XOBettie.

I like my hair beehived (à la Jackie) and my musicians long gone (j’adore Buddy Holly).  But, my fabulous & frugal journey has taught me that new is not necessarily a negative. Time is money. And with my go-go-go life, only up-to-the-minute budgets and automatic biweekly investments will do.  Below are my top tools and resources.

Mint is my constant companion. It fills my every financial-tracking need. Mint reminds me when bills are due. Mint discretely messages me when my account balances are low. And Mint keeps my spending in check with a beautiful budgeting feature. I’ll spare you our sappy story, but see Mint’s magical website for yourself here!

Automatic investing. Automatic–I like! Investing–only intimidating at first, I promise!

The magical math of compound interest motivated me to invest. Just like how a snowball rolling down a hill gathers snow, my money can grow exponentially when earning interest.  Shopping is my cardio (à la Carrie Bradshaw), so I wanted my money to be invested even before it had a chance to be spent on shoes.

Now, a portion of my paycheck is automatically invested in a mutual fund. Honestly, it was a bit of work to set up. I had a few hermit weekends spent researching which mutual fund was best for me, my timeline and my objectives. My friends laughed at me for staying in Saturday night, but now I’m the one laughing…to the bank!

Bonne chance with your fabulous & frugal journey to become financially literate! I know, it’s a semi-ginormous project. That, on top of navigating my quarter life, is not easy! But, I realized I could not afford to be a dumb money bunny any longer.

To get you started, you’re invited to join me for Sunday Brunch with Bettie (a.k.a. my weekly newsletter). Every Sunday morning I’ll recap the latest and greatest moments of my fabulous & frugal journey and answer my brunch buddies’ questions.

Hope you join me on my journey!

XO, Bettie Signet

(Originally published on one of Forbes’s Top Ten websites for Millennial Women, Quarterlette.

Why Save?

Save? I was too busy spending my way to success. My fabulous outfits made me look like I should be running my company. Instead, I get the coffee.

(click on the bold-faced vocab words:))

I’ll be waiting approximately forever to earn the $$ that matches my outfits and pays off my closet’s credit card debt.

Forever is very expensive in debt-land.

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Play with this compound interest calculator to see how $$ multiplied over and over again by an interest rate means more $$$$$$.

Compound interest goes both ways. Debt & savings grow exponentially.

I’m hoping my saving account’s compound interest payments will pave the way to my own compound (à la the Kennedy’s).

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(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)