Women of Wealth in Today's World

Are men smarter than women at creating an abundance of wealth? Today's women of wealth can teach you everything about attracting wealth and living an abundance of success!

Are Men Smarter When It Comes to Money?

Jumpstart Coalition is a nonprofit organization that promotes personal finance education.  They created a test on ‘Money Basics” and here’s what test scores revealed:

- The average teen failed the test.
- 15% of adult men failed the test.
- 42% of adult women failed the test.

Does this mean that men are smarter than woman?

Of course not.  Repeated studies over the years confirm that women and men are equally intelligent.  In fact, research shows that women are generally better at investing than men.  (But not because of intelligence.)  So why did nearly 3 times as many women fail a basic money test?  It’s because women are not as interested in money basics.  To become women of wealth, we must become more interested.  We must change this together and learn to attract wealth!

One of the most important financial concepts is ‘the time value of money’.  Money does not have a ‘fixed’ value – it is relative to time.  It’s easy to understand that a dollar today will buy much less than a dollar in 1950.  As times passes, inflation gradually decreases the value of money and erodes our financial peace.

But regarding our personal finances, compound interest has the greatest impact on ‘the time value of money’. Compund Interest is the secret to creating an abundance of wealth in your life.

Dictionary.com defines ‘compound interest as “interest paid on both the principal and on accrued interest”.  An example of this would be if you have a savings account of $10,000 (the principal) and it has earned $400 in interest over the course of a year (at 4%).  Interest would continue to accrue on the new total amount in your account - $10,400 ($10,000 plus $400 interest).  So another year of 4% interest would earn $416 because interest would also accrue on your previous year’s interest ($400) creating quite an abundance of success over time. 

Let’s look at another famous example of compound interest:

Given the choice, would you rather be given $1 million dollars or one penny that doubles in value every day for a month?  Would you choose the million dollars or the month long compounding interest on a penny?

Here’s what it looks like:
Day 1 $0.01
Day 2 $0.02
Day 3 $0.04
Day 4 $0.08
Day 5 $0.16
Day 6 $0.32
Day 7 $0.64
Day 8 $1.28
Day 9 $2.56
Day 10 $5.12
Day 11 $10.24
Day 12 $20.48
Day 13 $40.96
Day 14 $81.92
Day 15 $163.84
Day 16 $327.68
Day 17 $655.36
Day 18 $1,310.72
Day 19 $2,621.44
Day 20 $5,242.88
Day 21 $10,485.76
Day 22 $20,971.52
Day 23 $41,943.04
Day 24 $83,886.08
Day 25 $167,772.16
Day 26 $335,544.32
Day 27 $671,088.64
Day 28 $1,342,177.28
Day 29 $2,684,354.56
Day 30 $5,368,709.12
Day 31 $10,737,418.24

As you can see from the chart above, a penny that doubles in value every day for a month becomes over 10 million dollars!  Talk about an abundance of wealth!  Obviously this extreme example is meant to show the power of “interest accruing on interest”. Time will attract wealth if you show it how.

But compound interest can also work against us in the form of credit.  When we make a credit card purchase, we are charged interest on the balance each month.  In other words, the interest charges from month one are added to our principal – and in month two we are charged interest on this new, larger total principal – and in month three we are charged interest on this new, even larger total principal – and so on for months and for years!  This is how credit card debt snowballs over time and can become too large to EVER pay off.  That’s how powerful compound interest is!

Women of Wealth Basics:

Women of Wealth never, ever make the minimum payment on their credit card bills.  If you do, your balance owed can be even bigger the next month, and bigger the next month, and the next.  (We haven’t even discussed the interest rate itself!)  To develop an abundance of success, all we must do is learn from those who are successful.

Let’s be smart about credit cards.  If you have credit card debt, stop using the cards and pay them off – completely – as fast as you can.  (Add your minimum payment to your new finance charges and pay MORE than that number.)  After they’re paid off, cancel them all but keep one for emergencies.

Women of Wealth pay for everything with a debit card or cash.  This can save you THOUSANDS of dollars per year and TENS OF THOUSANDS of dollars (or more) over the course of your career advancement.

After your credit cards are paid off, create an abundance of success by investing as much as you possibly can.  Use compound interest to your advantage to help you attract wealth, create financial freedom and financial peace.