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Mental math is extremely useful when making financial decisions, especially because often you have to think on your feet to decide against an impulse buy and sa
by jackcosgrove 11y ago
Mental math is extremely useful when making financial decisions, especially because often you have to think on your feet to decide against an impulse buy and salesmen are actively trying to confuse you. That said schools have never done a good job of teaching finance basics, such as rules of thumb for calculating compound interest, or even what a reasonable interest rate is (hint: inflation is usually 2-3%, while the stock market usually grows at 6-7%).
- gist 11y agoIf you ever need more time "to think and decide" (and feel that you are being rushed) simply ask a question (almost any question will do but one that isn't a simple yes or no is better obviously) or make a statement and use that time to give more thought to what you are trying to make your mind up on.
- tosseraccount 11y agoStock market annual total return average is 11.41% (1928-2015). Total return means dividends re-invested; not inflation adjusted. (source : http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/... )