Earning Money

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Let’s Talk about compound Interest

If you decide to use investments as one of your residual income streams, I should warn you. You will effect your Compound interest of what could of been. Look what happens if you found a penny and instead of spending it or giving it away, What a 200 percent interest rate would do to it on a daily compound plan.

Impressive isn’t it? Most understand interest on their money, However almost all DO NOT understand compound Interest. So let me break down why if you are an investor or going to use interest to live off of. How waiting a few years for compound interest to help out would do you justice. Now I am going to show you what 100 dollars at 10% would be if you held your investment for 100 years and just let it build. I know I know… your probably saying IM NOT GOING TO LIVE 100 YEARS!

Think of it this way If your Grandfather Put 100 dollars in the bank and It gave him 10 percent a year for the next 100 years so that you had it when you were born. (it would of had to stay in and skip one generation from using it which would of been your parents)

Year Year Investment Total Investment Year Interest Total Interest Balance
1 $100.00 $100.00 $10.00 $10.00 $110.00
2 $0.00 $100.00 $11.00 $21.00 $121.00
3 $0.00 $100.00 $12.10 $33.10 $133.10
4 $0.00 $100.00 $13.31 $46.41 $146.41
5 $0.00 $100.00 $14.64 $61.05 $161.05
6 $0.00 $100.00 $16.11 $77.16 $177.16
7 $0.00 $100.00 $17.72 $94.87 $194.87
8 $0.00 $100.00 $19.49 $114.36 $214.36
9 $0.00 $100.00 $21.44 $135.79 $235.79
10 $0.00 $100.00 $23.58 $159.37 $259.37
11 $0.00 $100.00 $25.94 $185.31 $285.31
12 $0.00 $100.00 $28.53 $213.84 $313.84
13 $0.00 $100.00 $31.38 $245.23 $345.23
14 $0.00 $100.00 $34.52 $279.75 $379.75
15 $0.00 $100.00 $37.97 $317.72 $417.72
16 $0.00 $100.00 $41.77 $359.50 $459.50
17 $0.00 $100.00 $45.95 $405.45 $505.45
18 $0.00 $100.00 $50.54 $455.99 $555.99
19 $0.00 $100.00 $55.60 $511.59 $611.59
20 $0.00 $100.00 $61.16 $572.75 $672.75
21 $0.00 $100.00 $67.27 $640.02 $740.02
22 $0.00 $100.00 $74.00 $714.03 $814.03
23 $0.00 $100.00 $81.40 $795.43 $895.43
24 $0.00 $100.00 $89.54 $884.97 $984.97
25 $0.00 $100.00 $98.50 $983.47 $1,083.47
26 $0.00 $100.00 $108.35 $1,091.82 $1,191.82
27 $0.00 $100.00 $119.18 $1,211.00 $1,311.00
28 $0.00 $100.00 $131.10 $1,342.10 $1,442.10
29 $0.00 $100.00 $144.21 $1,486.31 $1,586.31
30 $0.00 $100.00 $158.63 $1,644.94 $1,744.94
31 $0.00 $100.00 $174.49 $1,819.43 $1,919.43
32 $0.00 $100.00 $191.94 $2,011.38 $2,111.38
33 $0.00 $100.00 $211.14 $2,222.52 $2,322.52
34 $0.00 $100.00 $232.25 $2,454.77 $2,554.77
35 $0.00 $100.00 $255.48 $2,710.24 $2,810.24
36 $0.00 $100.00 $281.02 $2,991.27 $3,091.27
37 $0.00 $100.00 $309.13 $3,300.39 $3,400.39
38 $0.00 $100.00 $340.04 $3,640.43 $3,740.43
39 $0.00 $100.00 $374.04 $4,014.48 $4,114.48
40 $0.00 $100.00 $411.45 $4,425.93 $4,525.93
41 $0.00 $100.00 $452.59 $4,878.52 $4,978.52
42 $0.00 $100.00 $497.85 $5,376.37 $5,476.37
43 $0.00 $100.00 $547.64 $5,924.01 $6,024.01
44 $0.00 $100.00 $602.40 $6,526.41 $6,626.41
45 $0.00 $100.00 $662.64 $7,189.05 $7,289.05
46 $0.00 $100.00 $728.90 $7,917.95 $8,017.95
47 $0.00 $100.00 $801.80 $8,719.75 $8,819.75
48 $0.00 $100.00 $881.97 $9,601.72 $9,701.72
49 $0.00 $100.00 $970.17 $10,571.90 $10,671.90
50 $0.00 $100.00 $1,067.19 $11,639.09 $11,739.09
51 $0.00 $100.00 $1,173.91 $12,812.99 $12,912.99
52 $0.00 $100.00 $1,291.30 $14,104.29 $14,204.29
53 $0.00 $100.00 $1,420.43 $15,524.72 $15,624.72
54 $0.00 $100.00 $1,562.47 $17,087.19 $17,187.19
55 $0.00 $100.00 $1,718.72 $18,805.91 $18,905.91
56 $0.00 $100.00 $1,890.59 $20,696.51 $20,796.51
57 $0.00 $100.00 $2,079.65 $22,776.16 $22,876.16
58 $0.00 $100.00 $2,287.62 $25,063.77 $25,163.77
59 $0.00 $100.00 $2,516.38 $27,580.15 $27,680.15
60 $0.00 $100.00 $2,768.01 $30,348.16 $30,448.16
61 $0.00 $100.00 $3,044.82 $33,392.98 $33,492.98
62 $0.00 $100.00 $3,349.30 $36,742.28 $36,842.28
63 $0.00 $100.00 $3,684.23 $40,426.51 $40,526.51
64 $0.00 $100.00 $4,052.65 $44,479.16 $44,579.16
65 $0.00 $100.00 $4,457.92 $48,937.07 $49,037.07
66 $0.00 $100.00 $4,903.71 $53,840.78 $53,940.78
67 $0.00 $100.00 $5,394.08 $59,234.86 $59,334.86
68 $0.00 $100.00 $5,933.49 $65,168.34 $65,268.34
69 $0.00 $100.00 $6,526.83 $71,695.18 $71,795.18
70 $0.00 $100.00 $7,179.52 $78,874.70 $78,974.70
71 $0.00 $100.00 $7,897.47 $86,772.17 $86,872.17
72 $0.00 $100.00 $8,687.22 $95,459.38 $95,559.38
73 $0.00 $100.00 $9,555.94 $105,015.32 $105,115.32
74 $0.00 $100.00 $10,511.53 $115,526.85 $115,626.85
75 $0.00 $100.00 $11,562.69 $127,089.54 $127,189.54
76 $0.00 $100.00 $12,718.95 $139,808.49 $139,908.49
77 $0.00 $100.00 $13,990.85 $153,799.34 $153,899.34
78 $0.00 $100.00 $15,389.93 $169,189.27 $169,289.27
79 $0.00 $100.00 $16,928.93 $186,118.20 $186,218.20
80 $0.00 $100.00 $18,621.82 $204,740.02 $204,840.02
81 $0.00 $100.00 $20,484.00 $225,224.02 $225,324.02
82 $0.00 $100.00 $22,532.40 $247,756.43 $247,856.43
83 $0.00 $100.00 $24,785.64 $272,542.07 $272,642.07
84 $0.00 $100.00 $27,264.21 $299,806.28 $299,906.28
85 $0.00 $100.00 $29,990.63 $329,796.90 $329,896.90
86 $0.00 $100.00 $32,989.69 $362,786.59 $362,886.59
87 $0.00 $100.00 $36,288.66 $399,075.25 $399,175.25
88 $0.00 $100.00 $39,917.53 $438,992.78 $439,092.78
89 $0.00 $100.00 $43,909.28 $482,902.06 $483,002.06
90 $0.00 $100.00 $48,300.21 $531,202.26 $531,302.26
91 $0.00 $100.00 $53,130.23 $584,332.49 $584,432.49
92 $0.00 $100.00 $58,443.25 $642,775.74 $642,875.74
93 $0.00 $100.00 $64,287.57 $707,063.31 $707,163.31
94 $0.00 $100.00 $70,716.33 $777,779.64 $777,879.64
95 $0.00 $100.00 $77,787.96 $855,567.60 $855,667.60
96 $0.00 $100.00 $85,566.76 $941,134.37 $941,234.37
97 $0.00 $100.00 $94,123.44 $1,035,257.80 $1,035,357.80
98 $0.00 $100.00 $103,535.78 $1,138,793.58 $1,138,893.58
99 $0.00 $100.00 $113,889.36 $1,252,682.94 $1,252,782.94
100 $0.00 $100.00 $125,278.29 $1,377,961.23 $1,378,061.23

Impressive isn’t it. Now I hear all the skeptics… But banks won’t give you 10 percent on your money!… Well if you invested in the S&P for the last 100 years your average return would of been 11%.  I am not saying to go invest in the s&p However I am showing that 10 percent is available if you just open your sights and look for it. Again you need a 10 percent AVERAGE. so some years it can be 8 or 9 percent and some will be 12 and 13 percent.

What is residual Income?

Ok now for the basic’s. Let’s define what residual income is.

Residual Income
a. Continuing royalties on patents.
b. Continuing royalties on copyrights or performances.
c. Dividends paid on stocks you own.
d. Rent payments from Houses you are renting out.
Well, now that we have that covered how many income streams do you have coming into your life?
If I could guess it, You’re probably saying “Not enough!”
Hopefully This site can change that and show you a few ways to provide some small streams or one large stream.
Ok, right now if you work for your paycheck than you are not on a residual income stream. A residual income generates whether you are there or not.
A job (aka career) is on a linear income.
Linear Income
a. Salary: You work so many hours, you’re paid so many hours.
b. Sales: You make so many sales, you’re paid so many sales.
c. Services: You perform so many services, you’re paid so many services.
-When YOU stop; your INCOME stops.
-To expand your income you must work more hours and/or hire people.
-Either way, growth is linear too, and you always have to be there.
So now you have to ask yourself.
“How do I build more Residual Income streams?”
Don’t worry I am going to help you figure that out!

I’m glad your here!

Welcome to the start of your new beginning. If you are here then this means that you are probably unsatisfied with your money situation and your looking for something… But you probably do not know what. You just know it when you come across it. Well in the next few posts hopefully I will have what you are looking for. I am not a guru nor some millionaire that gets paid to do this.

This blog is my way of keeping myself in check with my own investing thoughts and ideas.