Investing means putting money into something that you expect to grow. Stocks, bonds, property, index funds — each has different risk and return.
Slide principal, rate and years
compound → $38,061 (+$33,061 interest)
compound: A = P(1 + r)ᵗ · simple: A = P(1 + r·t)
Time in the market
A 7%-ish average return doubles money roughly every 10 years (Rule of 72). The investor who starts at 25 instead of 35 can end up with nearly twice as much at retirement — same monthly contribution.
Lower-effort, lower-risk ideas
- Index funds — own a slice of hundreds of companies at once, low fees.
- Diversify — don't put everything in one stock.
- Invest regularly — same amount each month smooths out the bumps.
- Only invest money you won't need for several years.
Returns are not guaranteed — markets fall as well as rise. The 7% figure is a long-run *average*, not a promise for any given year.
Three big ideas
- Return — what you make as a percentage
- Risk — how much the value can swing
- Time — compounding makes long horizons very valuable