The lazy way to get rich - MoneyWeek investment tutorial

Tim Bennett, deputy editor of MoneyWeek magazine, explains how you can use compounding to make your money work harder for you.

For more finance and investment tutorials subscribe to our youtube channel or visit our website at http://www.moneyweek.com

Follow MoneyWeek on Facebook

http://www.facebook.com/pages/MoneyWeek/110326662354766

Follow MoneyWeek on Twitter:

http://twitter.com/moneyweek

Category:

Education

Tags:

• what
• is
• comptime
• value
• of
• money
• compounding
• finance
• credit
• 'stock
• market'
• investments
• tutorials
• Trading
• Tutorial
• Stocks
• Analysis
• Investment
• Trade

[MoneyWeekVideos]

afnankhokhar - Yes I agree inflation needs to be taken into account to get a real annual return. But even with a lower real return the compounding effect is how you beat inflation over the long term. Interest on interest is the key...Tim.

[MrComplyordie]

@andrewlively Too many ways if you ask me!!

[andrewlively]

where can I get a10% return?

[bammbamm12]

Comound interest is immoral. And if everyone charged it, there wouldn't be enough money on earth to collect the interest. It's a way that the rich and powerful can exploit the weak. The great part is, that eventually there's a default, and the lenders get their comeuppance.

[izrafeil]

wow really if someone has given a 1% per annum loan on interest since Moses over a dollar, how much would that dollar be worth now?

[afnankhokhar]

Tim I think you missed the bit on inflation! So that 1.2 million doesn't sound as impressive when you can only buy, a car or something!

[gitansharora]

guess what, here in India you get 10% :)

But... the inflation is around 9% lol

[stankmaw]

Wish I could get 10%

[firstspar]

@ik999 sit down. take a breath. look up percentages in a high school maths text book. then stfu.

[NicosMind]

I remember seeing a good example one time about compound interest. Lets say you save 2000 per year at 5% compound interest. So first year youll have 2100, second year 4305 etc.

Now at the end of 10 years youll have 26413.55. Which is a 6 &1/2 grand return on your 20g investment.

Now just say you stop saving and a friend of yours starts. On year 20 youll have 43024.80 and your friend 26413.55. By year 30 youll have 70082.88 and your friend will have 69438.41. And thats cause you started early!