What should you do? With your money!!

TIME & MONEY:PARTNERS IN YOUR PROSPERITY

If you understand how time affects the value of your money, you can make decisions about what to invest in and what to buy, in order to enhance that value.

What can work against you over time is inflation. What can work for you is appreciation.

What works both for and against you is interest. For instance, when you’re earning interest (or dividends from bonds or preferred stock), it adds to the value of your money. But when you’re paying interest (on, say, mortgages and car loans), it can erode your money’s value.

The interest rate does make a difference: At 4% it will take almost 20 years to double your money; at 5% it will take almost 15 years; at 8% it will take just less than 10 years.


Unfortunately, the value of your money can also go down if inflation and market rates of return are rising. Here’s roughly what your $1,000 might be worth at different market rates if you just stuffed it into your mattress and then went shopping with it in a year or two:

A $1000.00 at inflation of 3.0% = $971.00, @ 6.0%= $943.00, @ 9.0%= $917.00 1st.Year

The same $1000.00 3.0% = $943.00, @ 6.0%= $890.00, @ 9.0%= $841.00 2nd.Year

So you can see what happens to currency if it does not keep moving. It is very important that you understand interest rates, compound interest, inflation, investing, and budgeting.

For further details send e-mails to kirkendohl@bellsouth.net or kirkendohl.investments@gmail.com Comments are welcomed!!!