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World Bank chief warns of financial crisis World Bank chief Robert Zoellick on Saturday warned of a "new and more dangerous" time in the global economy...
US Recession Risks Rises The threat of a new recession is rising in the United States, economists say, as they slash their ..
Unsafe US debt remains safe haven US Treasury bonds remain a hot ticket for investors looking for a low risk investment in a volatile market despite the unprecedented ...
US borrowing tops 100% of GDP US DEBT shot up US$238 billion (S$287.2 billion) to reach 100 per cent of gross domestic project after the government's debt ceiling was lifted
Consumers consumed by debt The average consumer may feel far removed from the heated debates concerning the $14.3 trillion debt ceiling. But the truth is...
Financial Crisis II. Get out of debt now There is increasing talk among traders and financial analysts that the latest slump in global share markets
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Compounding loans or investments
Scriptural Financial Freedom Obtaining God's Blessing






Compounding: Loans

Or investments

Money and possessions are a very effective tool that He uses to grow us up. Therefore, we shouldn’t ask, ‘God, why are You doing this to me?’ but ‘God, what do You want me to learn?’

Three Financial Planning Principles
1. There are no independent financial decisions.
2. The more long-range the perspective the better the decisions today.
3. Financial decisions made today have lifetime implications.


The Rule of 72

Have you heard of the Rule of 72? Its a very simple but profound principle. 72 divided by the interest rate reveals the length of time it will take for your money to double. For example, if you started supporting yourself at age twenty and for the next forty years you always spent $1000 less than you earned and you invested that $1000 each year in an investment earning at least 12.5% interest, at age sixty you would have an investment fund of $1,000,000.

Or if you are already at age forty, you can spend $10,000 per year less than you earn, invest it at 12.5% interest, and you can still accumulate the $1,000,000. The 12.5% and $1,000,000 are not magical nor necessarily even desirable, but they do illustrate what has been called the eighth wonder of the world - the "magic of compounding".


The Magic of Compounding

The magic of compounding results from the relationship between an interest rate and a time period. For a $10,000 investment:

End of YearValue
% 3 6 9 12 15 18 21 24
3 $20K
6 $20K $40K
12 $20K $40K $80K $160K
24 $20K $40K $80K $160K $320K $640K $1,280K $2,560K


Compounding can work for or against you. Investment through compounding reaps huge benefits in the long run, but it can also tie you down with interests.

Calculate your mortgage, credit card repayment, loan interest as well as your compounding interest and more with our 25 calculators!

The Bible does show many ways to overcome any financial crisis. Many of these principles are laid out in our successful course, the Scriptural Financial Freedom series. To learn more, you can download the Small Groups kit from our estore.

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Financial Freedom Tips & Toolbox

Today's Pick: Without Money and Without Price Without Money and without price by [C H Spurgeon]



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