If you even had or in a mortgage, had an outstanding balance on a credit card then you know what compound interest is. On those financial instruments the charges run up fast. Not paying debt makes you richer. However not paying debt may mean you have to miss out on something you like, so what is the best of both worlds. One is to use the financial instruments and pay your debt down fast. The other is on your investments – ensure you get a dividend or buy the stock which pays one consisently. In an ideal world, you would reinvest the dividends for dividend shares are meant to have a longer lifespan and many North Americans are living longer – the emphasis on pensions. When pensions first came out the life span was 71 years, not it is not uncommon to see 90 year olds. We are living longer.

Compound interest is a wonderful device that can be on your side – use it. Dividend paying stocks use it.

There are always more questions than answers, till next time – to raising questions