金融观点

[来源: CIR] [分类提示: NEWS] 标题: Opinion: Do You Believe in Magic? By Raymond Sia As a child of the 1980s, I remember being amazed watching David Copperfield (commercially successful American staged magician and illusionist) making the Statue of Liberty vanish or walk through the Great Wall of China. It was captivating precisely because we couldn’t see how it worked. The trick depended on our not knowing. Money works the opposite way. The less we understand it, the more it works against us. The more we understand it, the more it starts to look like “magic”; not because it’s hidden, but because the results feel almost too good to be explained by simple math. Below are three “money magic” worth learning.  Each one can build real wealth. Each one can just as easily destroy it too if one is not careful or discipline. The difference isn’t luck but it’s understanding. 1. The Magic of Saving and Compound Interest A wise man once said money speaks only one language – “If you save me today, I will save you tomorrow.” Compound interest is the closest thing banking & finance has to a magic trick that is proven and actually works. Albert Einstein is often credited with calling compound interest the eighth wonder of the world; and whether or not he said it, the sentiment holds. Money that earns a return, and then earns a return on that return, grows at an accelerating pace that defies our natural intuition. The catch is that compounding is slow at first and dramatic later. Someone who saves consistently starting at 2