Transcript
Speaker: Everyone dreams of living an uncommon life and the best asset you have to achieve your dreams is you. Welcome to the Uncommon Wealth Podcast. We're going to introduce you to people who are living uncommonly. We're also going to give you some tools and strategies for building wealth and for pursuing an uncommon path that is uniquely right for you.
Speaker: Hello and welcome everybody to another episode of the Uncommon Wealth Podcast, where I'm your host, Philip Ramsey, and I'm with... Aaron Cremland. Yes, it's a simple step. Yes. We're talking about something quick, something you can implement, something that could help you. This one, we're talking about the eighth wonder of the world. Power of compounding. Duh, duh, duh, duh. Compounding interest. Aaron, take it away. Oh my gosh. This is so much fun, guys. like This is the one thing I wish they'd teach more in school because it is it reaches so many things in life. But when we're actually talking about the numbers, is it starts off slow and it's boring. But as it grows, it just gets so much powerful.
Speaker: And people don't understand it. And I don't, and I could sit here and throw numbers out to you, but I'm really truly asking our listeners like, go and find a calculator. There's all over online. Start punching the numbers and then really see what happens with compounding interest. Yeah. Yeah. Compounding interest. I was teaching my son's fifth grade class. Okay. I asked him, I was like, okay, who would want to take a penny doubling for 30 days or $500? Yeah. you know And then like people were like, I would take a penny for 30 days. And I was like, OK, how about $2 ,000? And I just kind of like just saw. Yeah. Anyway, so that's what, because like a penny doubling every day is like 100 % rate of return yes every day, which is bananas. Yeah. At the end of 30 days, it ends up being like 10 or $9 million dollars or something, $9 or $10 million. dollars It's something crazy. yep But man, the power of compounding interest is fascinating. And the problem is it doesn't start out fast. And that's kind of how we're wired. But Warren Buffett says that this is his biggest tactic was just time. yeah Time and then he invested
Speaker: early. yep That's it. like if you really like if your If your mind is having a hard time wrapping around this, like think about it this way. Think about a credit card and why are credit cards so hard to pay off? Oh, they have compounding interest, but going in the opposite direction of your favor. Oh, fascinating. I've never thought about that. Yeah. I mean, they're earning that interest of the, what is it? 15, 25%, 22%. Yeah. But you know, it's like, but going against you to pay it off and you can have $20 ,000 on there. You know, it's like, Oh my gosh, I got a $200 payment and that's only the interest.
Speaker: Yeah, right. It's only like $6 of principle. Yeah, but like, you're like, okay, it's $200, but that, no, that's $200 a month. Yes. Okay. So how can our listeners apply compounding interest to themselves? If you have a 401k and you're putting money in, that's one way. That's one way you can do it. Like, you know, but a brokerage account, brokerage account, which is like a savings account. You know, like you need to contribute to that way. You can do, uh, You can do your personal retirement accounts. yeahp you know you can do ah You can even do like these high yield savings accounts. yeah you know something it's something and no It's not as great, but like it's it's interest. you know it's interest also And you can keep contributing to it. yeah and then I'm a bit like, here I got to be uncommon because we're uncommon, right?
Speaker: Also think about it in your life too. If you're investing in yourself, things take time to build on it. So keep at it, things compound over time and nothing worth having comes quickly. Amen. That is the best simple step we've ever said. I don't know, it's quick, it's easy. The power of compounding interest, not only about your money, but other things too. Relationships, even jobs or your your uncommon path that you're working on, a business that you're trying to, small things. Small things add up to end up being big things.
Speaker: But to truly understand the things you learned in your life, do go play with a calculator online, plug the numbers in and see what happens over time and see the beauty of how that builds. It's pretty sweet. Yeah. Thanks for listening. You've been listening to the Uncomfortable Podcast. I've been your host, Philip Ramsey. And I'm Aaron Kramer. Until next time, go work on compounding interest. Yes. Goodbye.
Speaker: That's all for this episode, brought to you by Uncommon Wealth Partners. Be sure to visit uncommonwealth .com to learn more about our services. Don't miss an episode as we introduce you to inspiring people who are actively pursuing an uncommon life.
