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.
Residual Income 