The power of one ... percent


Psychologically speaking, the number one doesn't do a whole lot for most people. Do you want ONE extra french fry? Do you have ONE dollar I can borrow? Can you spare ONE minute of your time? See it's hard for most people to get excited about the number ONE, which is sad because it's the loneliest number...

Well what if I told you that there's at least one situation where ONE is not only important, but also as far from lonely as you can get? If you're following along you've probably already guessed that this post is about the power of an additional ONE percent interest, specifically compounding interest.

J.D. Roth of Get Rich Slowly turned me on to this easy-to-understand infographic that shows you the power of one percent and compounding interest when it comes to savings for retirement. If this doesn't help you overcome the psychological "meh" that comes from seeing the number One in an investment brochure, then I'm not sure what will.

Click through for the full infographic.