FreedomPills

What is the Compound Interest? Compound Interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.  Example: 1,000$ is deposited into a savings account paying 20% per annum, compounded annually. At the end of one year, 1,000 x 20% = 200$ interest is credited to the account. The account then earns 1,200 x 20% = 240$ in the second year. And so on…. Compound interest is contrasted with   simple interest , where previously accumulated interest is not added to the principal amount of the current period, so there is no compounding. Compounding: Friend or Foe? Compounding is extremely important because of the very powerful effect it can have on your financial situation over time. As J. Reuben Clark said  “ Interest never sleeps nor sickens no...

What is Fi nancial F reedom? It is your liberation from Wage slavery , a situation in which a person's livelihood depends on wages or a salary, especially when the dependence is total and immediate. In other words, Financial Freedom ( aka Financial Independence ), is a condition that you reach when you have enough money and investments to afford the kind of life you want for yourself and your family. To reach this condition you must have a constant increase of your savings and investments that allow you to retire if and when you want, or do a job you really desire to do, even for a low or no wage. When you reach Financial freedom, you can stop to work to make money, because your money is working hard for you. If your money works for you even when you sleep and makes more money day by day, you are on the highway to financial freedom! When I can reach Financial Freedom? It is a matter of Shockingly Simple Math . To reach Financial Freedom you ha...

What exactly means the term “Rat Race”? What is Financial Independence? We need to deepen the meaning of these two concepts. Let's start with: The Rat race ( link ) A Rat Race is an endless, self-defeating, pointless pursuit. The phrase equates humans to rats attempting to earn a reward such as cheese, in vain. Today the Rat Race is basically our competitive struggle to work and get ahead financially, to buy stuff we don't use, to impress people we don't like. Citizens are rats in a maze, expending their life energy running pointlessly, achieving nothing meaningful. For many people work is an endless pursuit of an impossible happiness with little reward or purpose. For many of these, the reward is the "right to buy stuff". ...if it feels good  The price of this "right" is an absurd cyclical commute between home and work, which steals your time and your life, and which makes you feel like a mou...