Turn the lesson into action. Run these against your own numbers — that is where it becomes real.
Elena — contributed$36,000
Kevin — contributed$108,000
Kevin put in three times what Elena did.
$69,000More than Kevin — what Elena ended up with, having invested $72,000 less. The only variable that differed was time.
Starting balance$8,000Both, at 24% APR
Interest Terrence paid$16,000+Twice the original debt
What he paid in total3×The amount he borrowed
What Terrence borrowed$8,000
What Terrence repaid$24,000+
The same exponential curve that built Elena's wealth, pointed the other way.
- What is your highest-interest debt, and its rate? That number is your guaranteed return.
- How many years until you would want this money? Time is the real lever.
- What automatic monthly contribution can you start this week — even a small one?
Put it into practiceRun your own numbers with the Basis Points Compound Growth Calculator, then come back and finish your plan above.