Saturday, 17 December 2011

Why do 20 percent own 84 percent?


Why do 20 percent own 84 percent?

Money is a force, like the wind, the waves, and the weather. Money dislikes being equally distributed. Money clonesmoney.
Why? How can we attract money?
Money obeys the 80/20 principle because of compound interest ” Einstein s most powerful force in the universe.
Start with a small dollop of money, save and invest it, then compound interest will do the rest.
In 1946 Anne Scheiber, who knew little about money, put $5,000 into the stock market. She locked away the share certificates and stopped worrying. By 1995 her modest nest egg had transmogrified into $22,000,000 ” up 440,000 percent! All courtesy of compound interest.
If we never save money, we will always be poor, no matter how much money we earn.
Most people have very little money because they don t save. The typical 50-year-old American has earned a great deal but has savings of just $2,300.
People with the most money have typically saved and invested it for many years. Compound interest multiplies savings in a breathtaking way.

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