The Economics of:
The Economics of:” Is a series Papa Sasquatch will be writing for Simple Sasquatch. The goal is to get people to stop and think before they spend money and to show the power of money and how doing simple things can have giant effects on your financial goals. I also hope to show our readers that they should only be spending money on things they really love. And to also show that frivolous spending can really hamper your savings goals. Simple Sasquatch hopes “The Economics of:” series will start you asking questions like: “Do I really need that new shirt?” “Will this dinner out really be better than a home cooked meal?” and “Am I actually getting full value out of my cable bill?”
The world’s best investor Warren Buffett is famous for not wanting to spend a single dollar because he knew if invested this dollar could turn into $100 or $500.
We will be using the famous compounding formula: your money x (1+i) ^ n
Understanding compounding will change your life as everyone knows, Einstein called compound interest the eighth wonder of the world and stated: “he who understands, earns it….he who doesn’t, pays it”
I will also be using a basic savings model of 40 years savings at an interest rate of 5% this assumes you start saving at 25 and retire at 65 and get an average return on investment of 5%. The reason I picked these ages is because most people are done school and have started a full-time job at 25 and 65 is the normal retirement age in Canada.
It is important to know that I am not an economist just a regular old Sasquatch trying to make it in this complex world. I will keep things simple so everyone will understand. So if you see any math or formula errors please hit us up on twitter: @simplesasq or email at email@example.com.