Eating a R1 million dinner/ understanding how compound interest work
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If you received a R1 million bill with your restaurant dinner, your jaw would likely hit the floor. But what if you knew that your weekly takeout meals could be worth an extra million rand in your retirement pot?
As a simple example of just how powerful compound interest can be, imagine that someone offered you the choice between winning R30,000 today or a magical cent that doubled in value every day for 30 days. At face value, the first option seems far more appealing. However, if you instead chose the magical cent that doubles every day, your winnings would gradually pick up momentum as the month went by, growing from just a few rand at the end of the first week to over R5.3 million by the end of the 30 days.
As a simple example of just how powerful compound interest can be, imagine that someone offered you the choice between winning R30,000 today or a magical cent that doubled in value every day for 30 days. At face value, the first option seems far more appealing. However, if you instead chose the magical cent that doubles every day, your winnings would gradually pick up momentum as the month went by, growing from just a few rand at the end of the first week to over R5.3 million by the end of the 30 days.
