When does 25 equal 33?

When does 25 equal 33? ??

I know, I know... It's Tuesday Morning and this sounds like one of those picture Math problems that everyone gets wrong.... but hear me out... it is Money Math. ??

You see Money and Average returns go together like - Oil and Water... they don't! I think we often get a little caught up in what we see in the news and think our money is back to whole based on the percentages... and that just isn't the way it works. ???♀?

?????We all went to school and we probably all experienced a bad grade at least once in our life. (Or is that just me?) 1 bad grade did what to your overall average for the class? Tanked it! How many good grades did you have to get in order to bring your average back up? A LOT! A lot more than you thought and that is why you didn't do that too often. Money is the exact same way! Check out this example:

You start out with $100k.

The market goes ?? 25% .... so your money is not at $75K.

Let's say the very next day the market goes ?? 25%

Your average would be 0%

However, your balance $93,750. ????

This is where you would have to earn 33% on your money in order to get back to whole! This is where -25 = 33. So, I highly suggest that you work your numbers rather than relying on percentages only - because sometimes they LIE! You might even want to google a CAGR calculator that calculates actual return for you - because average returns and money don't mix... nor do the numbers work out in the end.

??Besides that - Do you want a higher "AVG" return or do you want more money in your account?

Msg me to help you work the numbers!

#dothemath #lookfortheactualreturn #theanswerismoremoney

#thereisabetterway #neverlosemoney