From WSJ:
...most folks underestimated how much savings would grow and how much debt would end up costing.
The problem: People think in terms of simple interest, not compound interest. For instance, if our investments clock 8% a year for 10 years, we don't earn 80%, as many people assume.
Rather, we would notch a cumulative 116%. Remember, we earn returns not only on our original investment, but also on the investment gains earned in earlier years. Similarly, with credit-card debt, we pay interest both on our original purchases and on any monthly interest charges we didn't pay off in full.
I don’t think it is anything too stupid, but of course one has to be careful. I believe there is nothing wrong with hearing these things. I am always glad to hear others view, as that is something that I feel very comfortable with since this gives me good ideas. Also, I have always learned in trading that you can’t learn things from your own; it has to be learning from everyone. I trade with OctaFX broker and with their demo contest; I already get great experience with other traders.
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