I meant that it's your friend when you are saving money. Go ahead and play with different numbers in one of those 401(k) calculators.[1] Basically, you deposit the interest from previous years' deposits with your current year. In just a few years, you're depositing quite a bit.
It's an enemy when you borrow money, say with a credit card. Just the opposite of saving, you borrow the previous interest every month. You're paying interest on interest. If you have trouble disciplining yourself, get and use a charge card (such as most traditional American Express cards) that forces you to pay off the balance each month.
It's an enemy when you borrow money, say with a credit card. Just the opposite of saving, you borrow the previous interest every month. You're paying interest on interest. If you have trouble disciplining yourself, get and use a charge card (such as most traditional American Express cards) that forces you to pay off the balance each month.
[1] This is the first Google hit, no affiliation or endorsement: http://www.money-zine.com/Calculators/Retirement-Calculators...