Let's say your hairstyle is such that you need a cut every six weeks. Let's say you go to your local Supercuts and pay $15 for your haircut and tip. This translates to $130 a year in haircuts; it's not a huge number; it's not even astronomically huge if you calculate the total for, say, 50 years ($6500); however, the power of compound interest is amazing: starting with a balance of $0, if $130 are added per year to an account earning 12% interest (the average interest earned in conservative, stock-market investing) and being compounded quarterly, the balance after 50 years will be $411,023.70.
Needless to say, I will continue cutting my own hair. On tap for tomorrow: the cost of Starbucks.
2 comments:
Now for the $411,023.70 question...have you started investing your haircut money, or are you "blowing" it on candy or gum or food or something?
Forget Starbucks. How about the cost of ice cream?
A concerned dad.
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