How Money Grows | Math in Real Life | Compound Interest, Vanguard, and Why You Should Save Now

Update: I am not available for tutoring! But still alive, :) Meanwhile, so many students have personally recommended Target Test Prep for GRE / GMAT that I asked them for a unique discount code, TestedTutor10, for this link: https://targettestprep.referralrock.com/l/1TESTEDTUTO21/ The first video in a new weekly series, looking at how you can use mathematics in your life, starting with the most exciting topic of all, compound interest. Aimed at those who are new to investing and saving. I offer private Saving / GRE / GMAT tutoring online at a fixed rate of $140/hr. Please get in touch via the email below, or through my tutoring website: https://www.gretutorlondon.com/ Enquiries: philip@gretutorlondon.com The video will touch on average returns from stocks, bonds and savings accounts, touch on inflation and the basics of investing. I will play about with a compound interest calculator, and discuss why saving now = instant gratification. Will use examples from Vanguard Funds, though I am NOT SPONSORED BY VANGUARD (yet!). https://www.vanguardinvestor.co.uk/what-we-offer/all-products https://www.nerdwallet.com/blog/investing/average-stock-market-return/ https://en.wikipedia.org/wiki/Socially_responsible_investing https://www.calculatestuff.com/financial/compound-interest-calculator - Notice after 10 years the interest you are adding outweighs what you are saving. - Tiny at first, irrelevant, pathetic, boring. - But by the end, the interest is far more important than the investment. One of the most useful tools from studying graduate tests such as the GRE and GMAT is confidence in handling percentages. And of the different percentage topics, compound interest is perhaps the most relevant to your bank balance. While I have done another video on calculating compound interest, in a nutshell, it is the idea that, on average, the growth in an investment is not fixed, it gets larger and larger. Even if the percentage growth stays the same, the percent applies to a bigger and bigger amount. Financially, if you can get an ongoing percentage return on a lump of money, then eventually the compounded growth in interest outweighs that initial investment. They key point is eventually. Compound interest in the first year or two seems pathetic. Bottom-line: You can only work with the information you have You could lose out, even fairly long term. Enquiries: philip@gretutorlondon.com I offer Skype/Zoom tutoring too! Rates are $130-140/hr. If you’re now ready to get into your dream MBA program, my former student, Angel, is offering virtual private Admissions coaching. She was admitted into Harvard Business School, The Wharton School of Business, and Columbia Business School (accepted into every school she interviewed for) after graduating from UCLA with a degree in Communication. She also got 3 perfect scores on the GRE’s Analytical Writing Assessment (99th percentile). Here is her link - https://linktr.ee/angel_accel - and you can reach her at angellinzhu@gmail.com with the subject line, “PHILIP SENT ME.”