Frugal Web: Fun Math and Cute Debt

flickr/CC - elisfanclub

There is a story that has been passed around many times about the power of compounding on a penny.

Would you work for a month (31 days) beginning with a penny a day if I promised to double your daily wage each day?
Consider the fact that on the second day you'd be earning 2 cents, on the third, 4 cents, on the fourth, 8 cents, and so on.

By day twenty-one, you'd be earning over $10,000 per day, and would probably be growing quite enamored with the job. On day twenty-five, you would earn enough to buy a decent home, and with your previous twenty-four days' earnings, you could furnish it and buy sports cars to fill the double garage, as well as a modest summer home to retreat to.

On day twenty-eight, you'd earn more than the average wage-earner would over his whole working life, and by day thirty, you'd be earning the equivalent of a state lottery's winnings. On the final day (day 31), you'd be earning almost eleven million dollars, and would have earned a grand total for the month of $21,474,836.47!!!

Not bad for a penny, but no way we would get that kind of job or interest anywhere!

Flickr/cc - kelsey_lovefusionphoto

My Heart Got Broken Today
"I first saw him when I was in college. We met through one of those computer sites and I was told he was generous and the type who would be there whenever I needed him.

"He was very bright and a real card, but my friends warned me he was nothing but plastic. Nevertheless, we began to go everywhere together ... C.C. bought me dinners, jewelry, expensive clothes -- almost everything I desired!

"A month later I met Bill, who was waiting for me when I went to pick up my mail. He seemed nice at first, but when I asked him what his interests were he said 21.6% ... It was evident that all he was after was my money. To make matters worse, Bill said C.C. would never go out with me again if I didn`t pay -- the two had their little trick planned all along."


Adapted from: American Greetings
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LINKS

The Carrot That Makes You Jump Through Hoops - {Financial Samurai} posted a great story about how rewards work for you. It is amazing the things you can do when you are rewarded, atleast over the short term. For a little while my parents paid me to study so I would get better grades.. it worked for a while, but eventually went back to old habits, money or not. It didn't seem worth it for me at the time. While the carrot may be appealing at first, the desire to continue has reside within.

Have You Got What it Takes? - {The Boxcarkid's blog} Take a vacation through homelessness courtesy of this tongue in cheek PR piece. "Explore the gritty sides of urban streets!  Make friends with homeless people.  Learn how to panhandle and dumpster dive with the best of them!  Discover cool and unusual places to sleep and eat."

What Would You Do With A Forklift Full Of Wheat Thins? - {Consumerist} Personally, crackers are not my thing, but for a name brand item I would love to get a pallet full of Kashi meals - those meals are delicious, low in calories, high in goodness and healthy to boot!