Friday, September 27, 2019

Defeating being BROKE for Good.

The great Albert Einstein is credited as once saying “Compound interest is the eighth wonder of the world. He who understands it earns it … he who doesn’t … pays it.”  While I do not know who actually made this statement; it is widely debated;  I have come to understand that the statement itself is 100% correct.  And I had definitely fallen into the paying side.

A while back, I started using a homemade Excel worksheet to track our monthly expenses.  Something stuck out like a sore thumb.  I would enter the balance on my credit cards; enter the payment I made, and have the amount automatically subtract from the balance due.  Supposedly I was keeping track of my debt in Real-Time.  What I did not have in that calculation was the interest rate on the balances I carried.  Each month I was rudely reminded the balance I actually owed was more than what I showed on my simple worksheet.  Each month I begrudgingly adjusted my amount due UP to agree with the account statements provided.  When we get into high-interest debt, we are now fighting against the inevitable force of compounding interest.

Why fight up a hill when you can instead run down it?  While everybody might know that high-interest is terrible, only a few people decide to do something about it. And to K-I-R-R ("KEEP it REAL and Righteous" ~Pastor. Gea. Anderson), it’s why BROKE PEOPLE are BROKE and RICH people are RICH.

Real fortunes are not made overnight, and nobody goes broke in one night either. That’s why lottery winners who never learned to manage money properly end up broke in just a short time.  (Guess that's why I never win...OH, SNAP... You have to play to win...)

It’s the habits that you live with, which define your wealth. If your spending habits cause you to fight against interest, you’re going to fight that fight the rest of your life. However, if your habits create interest for you, then just sit back and relax and let compounding interest do the work for you.  It's never too late to start.  

This week was a good week for trading.  Last week I finished behind with a small loss. This week I moved forward by 7 days.  Still a few days behind on the compounding goal for this week; but I will take it.  Not bad at all. Next week the Magic Trick should happen. I am really happy with this weeks' results because it proves that not meeting a goal is not the end of the journey.  Your setbacks are just a set-up for your next accomplishment!

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*Risk Disclaimer for Forex Trading.   The information here is for educational purposes only. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors.  Past performance is not indicative of future results.  The high degree of leverage can work against you as well as for you.  Before deciding to invest in foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite.  The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money you can not afford to lose.  You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.


  1. OH SNAP and Amen!! Thank you for being transparent with these words of encouragement. I fell back a little this week too but as you say, this set back is preparing me for the set-up!! Thank you Hiz Rib

    1. Yes Indeed. It would be unrealistic to think we would go through and make our goal every time. I am beyond belief on this small account so far!-- Watching it grow and know what is possible!