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Old 06-01-2005, 08:04 AM
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boneheaddoctor boneheaddoctor is offline
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Join Date: May 2004
Location: Hells half acre (Great Falls, Virginia)
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Quote:
Originally Posted by pentoman
Thanks for the replies.

Do not envy me, however; I was merely lucky to win a car a couple of years ago (which I sold), and haven't spend the money. I still live with my parents, and do all their business's IT and help with car repairs/collection/delivery/recovery to allow for that, in addition to my regular job, which is something of a yawner in local government an hour's drive away, largely involving standing at the edge of a busy road in a flourescent yellow jacket and otherwise driving around.


So my life is not not like something out of nine oh two one oh, which is why having a special car like this would mean a lot to me. Additionally, I have a £11,000 'student loan' from when I was at University, a very low interest - a little above inflation - loan given automatically when you go to University, repayable only during the time you are earning money (and only on earnings over £16,000/year). My current interest on this is only £25/month.


So with that out of the way, I can say I'm surprised to hear so many suggesting the "sensible" route. It gives me some confidence that if I choose that route, I will still be happy and won't regret doing so. But I don't know what to do apart from to leave the money gaining a miserable £50/month interest. I don't see the point in that. Then if later in life you buy a house, it still seems to me like you put all your money into your house for the next 40 years then once you've finished paying it off, all you end up with is... well, a house.




err by the way, can someone please explain compound interest? How do I make it "work for me"?


thanks, my most smart and knowledgeable friends!

Russell
Well put the money in a bank...you earn interest on the money...simple...well that money becomes principle and earns intrest on it...and so on and so on...you are better off with 10,000 lbs sterling Now in the account becasue the older you get you would have to putt more and mor ein the account just to get to where you would be with just this one deposit......something that may not mean much to you now but by the time you are my age (43) that car will be a distant memory and you will be wishing you had that money in the bank....

Here is a link that better explains it.

http://www.genuinehyip.com/articles/miracle_of_compound.htm
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