18 April 2011

Power of negative compounding: Opportunity losses

A missed due date on your phone or credit bills! Happens all the time in our busy schedules. Big deal! Yes its a big deal and it is indicative of a larger malaise affecting you personal finances. Procrastinating and being lazy about your personal finances will leave you with the burden of compounding opportunity loss. We have all heard or read about the positive power of compounding. Lets look and protect our personal finances from the negative power of compounding opportunity losses


Being lazy about the small things like not paying bills on time, being lazy about learning about personal  in our early financial  life compounds into the middle years. The middle years are then reflected by continued ignorance about personal finance, absence of adequate financial planning and the absence of sound investments for the later years. The later years then present a fait accompli where little can be done other than rue missed chances. This the negative power of compounding, where opportunity losses keep piling up.

Negative power of compounding: Mounting opportunity losses


We all have loss out on many a thing, many a time. The trick is not to let our opportunity losses compound.

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