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Many people say they do not understand compounding but let’s look at it this way.

Imagine you get 1 extra cloth for every 10 clothes in your closet.
And each time you buy new clothes the concept continues replicating
So let’s say you started year 1 with 30 clothes and you add 10 clothes every year

At the beginning of year 2
You would have
33 clothes (30 clothes + 3 clothes)

At the end of year 2
You would have
33 clothes + 10 clothes + 1 cloth( the new 10) + 3.3 clothes (on the 33)= 47.3
By the end of year 5
You would have 99.1 clothes

This is the power of compounding
The interesting part is you already do this with your clothes

Without the interest of course. So why not channel the energy of consistency to investing and enjoy compounding
Interest on interest
If the clothes were not compounding
You would have had just
Year 1 30 clothes
Year 2 10 clothes
Year 3 10 clothes
Year 4 10 clothes
Year 5 10 clothes
= 70 clothes

The difference between 99.1 clothes and 70 clothes is the interest compounding over time
So there were 3 elements at work here
The investment = 70 clothes bought (for analysis not in real life 😂)
The interest = 10% as it is 1 in 10 clothes 🙂
The time = 5 years

If any of this elements had changed, the outcome will be different
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Money Africa
@themoneyafrica
Where is the leak?
Where did all the money go? This is a question a lot of people tend to ask, few weeks after they've been paid. If you can't keep track of your expenses, you would not be able to identify your financial leaks.
A leak can come from something you buy often with an amount that's mostly negligible. Leaks are often tied to habits you indulge in or things you consume consistently.
Read 7 tweets
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Money Africa
@themoneyafrica
A mutual fund is a pool of money from different individuals invested and managed by a Fund manager for returns.

A mutual fund is like rice, we have Jollof rice, Coconut rice, Native Rice and co

What distinguishes a mutual fund is what it invests in.
For instance, there is money market mutual fund, equity mutual fund, real estate mutual fund amongst others.

The most popular one is the money market fund. It invests in T-Bills, Govt Bonds and commercial paper.

These are almost risk free instruments meaning your money is safe.
You need as little as N5,000 to open an account. You can top up as you wish. The interest accrues daily.

There are many mutual fund managers in Nigeria today. Make sure to acquire information about interest rates and redemption policies before you invest.
Read 4 tweets
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Money Africa
@themoneyafrica
Have you heard of commercial paper?

Commercial paper is similar to TBills but difference is that it is issued by large corporations with good credit ratings.
Like private sector kind of TBills.

So if a company needs funds,
It can bypass the banks and come to the general public
The commercial are issued as short-term debt/loan.
The duration is no longer than 270 days.

These papers can be readily traded
So that means you can easily get your cash back.

They are issued by large corporations with good credit ratings.
So you're asking what is the risk?

The companies that issue commercial papers are graded.

Meaning, they're rated based on their financial statements, history and risk of them not honouring their promise.

This grading also affects the kind of return they will promise
Read 7 tweets

Related threads

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Robert Dur
@DurRobert
People do not trust economists, we hear that all the time.

For instance, Esther Duflo recently argued that “economists have lost most of their credibility” citing YouGov data from 🇬🇧 media.eur.nl/Mediasite/Play…

However, slightly newer data give rise to some optimism!

Thread (1/n)
The newer data are also from YouGov in the UK, collected in April 2017, and commissioned by @economics_net and @ing_economics.

Full report: economicsnetwork.ac.uk/research/under…

The questionnaire contains more detailed questions about what people think about economists and economics.

(2/n)
The first bit of good news is that trust in economists is somewhat higher (35%) than in Esther’s data (25%).

(3/n)
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Russian Platform #HandsOffVenezuela 🇻🇪
@RussiaConnects
PEOPLE POWER IN AN AGE OF AMBITION

When e/one wants their own way no one gets their own way.

What is the effect of the individual empowerment revolution of this last half century?

When elites run the show & politicians are their servants what happens to individual aspirations?
PEOPLE POWER IN AN AGE OF AMBITION

Social media is a catharsis zone, a verbal battle zone where the first casualty is almost always the truth. People have been told their views are important for many decades now.

Being a humble truth seeker garners relatively few followers.
PEOPLE POWER IN AN AGE OF AMBITION

The Beatles sang ‘All You Need Is Love’, well, apparently not. People seem to have greater ambitions to dwell upon, shout about & do all they can to convince others are the best & most desirable goals.

And will apparently go to war for them.
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Praying Medic
@prayingmedic
Many people have misunderstood Q's warning about following those who make money as part of our movement. I'd like to explain what I believe was Q's intent with that message.
On April 29, 2018, Q posted a warning about following people who profit of the movement. He implied that some people had wrong motives for being involved in the movement.
If you read no further, you might think this was a general prohibition from Q about making money. Many people have interpreted his warning that way.

But to find out what Q really intended, you need to read a few more messages.
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Kambree Kawahine Koa
@KamVTV
New laws and the state sucking us for money money take effect today here in California.

ammunition background checks
banning lead bullets for hunting
increased gas tax
new social media rules
law enforcement rules

plus more..

I’ll list them below.
Illegal to use a social media bot with a fake identity with the intent to spur a purchase or influence a vote. Sen. Hertzberg, a Dem from Van Nuys, requires the bots to be identified due to false information and were used to post messages about Presidential candidates in 2016.
The gas tax will increase 5.6 cents per gallon today.

We were paying an average $3.75 per gallon as of late June, far above the national average of $2.71 calculated by AAA. The gas tax will increase to 47.3 cents a gallon July 1, according to the state Board of Equalization.
Read 10 tweets
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Scott Santens
@scottsantens
Many people don't seem to understand that if you install UBI within a conditional benefits system and keep all the conditional benefits without replacing any of them with UBI then all the counterproductive effects are still there. Paid work is still punished. Paternalism remains.
This is a problem mainly among those on the left, who see UBI as just more money where more is always better, when this is about far more than money. It's about unconditionality. Without UBI we need SNAP, but SNAP should be replaced by UBI because SNAP is a paternalistic program.
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Read 12 tweets
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Tony G
@TonyG10458326
1. So many people still don't fully understand the true power the media has over the way they think. They are feeding off of your grievances and emotions which invokes an emotional response based off of lack of evidence.....
2. Many people have no interest in checking things out on their own. Being told how to think and what to think has become too convenient for some who rely on the only sources of information they have known their whole lives which hinders their ability to use common sense....
3. So many people throw logic out the window rather than having to admit they were duped. If you tell people that "gullible" rhymes with "orange" enough times, there will statistically be a percentage of people that will eventually believe it to be true....
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