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Three Investment Strategies 

The power of compounding interest is best displayed by the following chart which, shows three investors, each investing $2000 per year for a specific period at 8% interest. Investor #1 started investing in 1998 and will invest for ten years only. Investor # 2 waits ten years but will invest continuously for 23 years. Investor # 3 began investing in 1998 as did Investor #1 and will invest the same $2000 each year for 33 years

The results show that Investor # 2 by not utilizing the power of time and compounding interest earned 28% less while investing 23 years longer than Investor # 1. Investor # 3 made 140% ($183,723.80) more than Investor # 2 and 72% ($131,529.5) more than Investor # 1. 

Looking at this scenario another way, Investor # 1has $163,723.80 more money than he deposited into savings. Investor # 2 has only $85,529.50 more money than he deposited into savings. Investor # 3 utilizing time, disciplined habit and compounding interest has $249,253.30 more money than she deposited into the account.

There is no question that starting the habit of saving and allowing compounding interest to work for you provides for a tremendous return in the pursuit of goals. 
YEAR
 $ INVEST
#1		 RETURN
8%		 $ INVEST
#2		 RETURN
8%		 $ INVEST
#3		 RETURN
8%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
 2000
2000
2000
2000
2000
2000
2000
2000
2000
2000		 2160
4492.8
7012.224
9733.202
12671.86
15845.61
19273.26
22975.12
26973.12
31290.97
33794.25
36497.79
39417.62
42571.03
45976.71
49654.84
53627.23
57917.41
62550.8
67554.87
72959.26
78796
85099.68
91907.65
99260.26
107201.1
115777.2
125039.3
135042.5
145845.9
157513.6
170114.6
183723.8









2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000









2160
4492.8
7012.224
9733.202
12671.86
15845.61
19273.26
22975.12
26973.12
31290.97
35954.25
40990.59
46429.84
52304.23
58648.57
65500.45
72900.49
80892.53
89523.93
98845.84
108913.5
119786.6
131529.5		 2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
2000
 2160
4492.8
7012.224
9733.202
12671.86
15845.61
19273.26
22975.12
26973.12
31290.97
35954.25
40990.59
46429.84
52304.23
58648.57
65500.45
72900.49
80892.53
89523.93
98845.84
108913.5
119786.6
131529.5
144211.9
157908.8
172701.5
188677.7
205931.9
224566.4
244691.7
266427.1
289901.2
315253.3
Total $20,000.00 $183,723.80 $46,000.00 $131,529.50 $66,000.00 $315,253.30