SIMPLE AND COMPOUND INTEREST (copy)

Time Value of Money

The concept that money invested today is worth more than money invested in the future due to the potential for growth and compounding.

Diversify your Risks and Investments

The practice of spreading investments across different asset classes to minimize risk and maximize returns.

Compounding Effects of Money

The concept that money grows faster and faster each year due to earning returns not only on the initial investment but also on the returns from that investment.

Understand the Stock Market

The importance of having a basic understanding of the stock market to effectively manage business finances and make informed financial decisions.

Keep a Budget

The necessity of creating and maintaining a budget to understand and optimize company finances.

Opportunity Costs

The understanding that every decision to spend or invest money has an associated cost, and considering alternative uses for that money can help maximize long-term wealth.

Interest Rates

The impact of interest rates and overall rate of returns on various financial aspects, such as retirement savings and investment growth.