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How to get rich with compound interest

I want to help you save 25 euros this week because it can yield 65,000 after 20 years with compound interest! Who would not want that!

Compound interest is the 8th world wonder.

This week I invite you to do a challenge with me. I want to help you with saving and investing the first 25 euros (or more!) and grow your money tree. Do this every week and you will have saved up a wonderful pot of freedom in 20 years. You deserve it! Join the hashtag #simplechallenge and tag me in your post! @simplewithmoney on instagram.

Compound interest

Earlier I wrote about the 8th wonder of the world as Albert Einstein described it. Whether he really said this or not is unclear. That it’s true is certain! If you understand how compound interest works, then you will benefit from it. If you don’t understand it, you pay for it.

Today we are going to calculate with interest. “Ewww, numbers,  I really don’t like that. So difficult! “

Okay, I get it. Still, I ask you to calculate with me. If you invest in a well-spread indexfund, the average return over 20 years is around 8% per year. If you invest 1 euro now, it is worth about € 4.65 in 20 years with 8% growth per year. That doesn’t sound very impressive.

Invest 100 euros.

If you are going to invest 100 euros now, it will be worth 466 euros in 20 years’ time. That sounds like more fun, but it doesn’t make you rich.

1 euro investment
100 euro investment
1200 euro investment

If you invest 100 euros every month this year, that will probably be worth more than € 5500 in 20 years. Sounds better allready. Your investment has then been doubled more than 4.5 times!

I want to challenge you to do this. Deposit 100 euros every month. And if you can do that for a year, just go on and do it for 20 years in a row!

Invest 100 euros every month for the next 20 years gives you a possible return of 65,000 euros!!! You have then deposited 24,000 euros. The profit is therefore € 65,000- € 24,000 = € 41,000. You didn’t have to do anything for that, except put in 100 euros every month. Add another 10 years to this and with an average return of 8% per year you suddenly have doubled, around €159,000 in your investor account! Mindblowing!

24.000 euro investment.

Now you know how compound interest works and you can benefit from it for the rest of your life. This works the other way around as well. If you have a mortgage with 8% interest, you pay compound interest on it too! Let that sink in for a moment.

Hardcore investers

For the high flyers, I will put an example below under what happens if you save 500 per month for 20 years. I also realize that for many normal people with normal incomes this is not possible to set aside 500 euros every month. It may succeed in a season in your life, but with a family expansion, divorce, renovation or loss of income / job, it may not be very realistic to set aside 500 every month for 20 years. I encourage you to live frugally and below your means and if you have a nice salary or team up with your partner to cut living costs in half, you can certainly get very far! And of course keep reading this blog 😉 Therefore, here is the calculation to motivate you.

120.000 euro invested

Join me on this challenge! Take a picture of what you saved with the #simplechallenge and tag me @simplewithmoney.

At the end of the week we are going to deposit the 25 euros in an indexfund.

Until next time!


I am not a Financial advisor nor am I your financial advisor. I am not a trained financial professional. This blog is for entertainment purposes only.

On monthly bills and utilities

I tell you to go and invest and save up for an emergency fund and I give advice about investment strategies. But life is expensive, I get that and I agree. It is hard to have some money left at the end of the month. I like to share some tips to keep the utilities and monthly bills as low as possible. There are more than just these tips, the list is not complete. Also you are probably already doing a lot of there. Hopefully it is of help anyway.

  • Check at your bank if the interest rate on your mortgage can get lower. Ask for rent reduction at the landlord (traded for cleaning the communal space for example).
  • Compare the price of electricity to other providers and switch to the cheapest.
  • Compare the price of all your insurances and switch. For example house, life, travel, care, liability, legal assistance etc.
  • Cancel all non-essential insurances. Like phone, all risk for your older car, travel insurance if you are not traveling etc.
  • Change your car insurance if you pay for mileage. If you commute less due to working from home, it can be lowered.
  • Change internet providers.
  • Cancel your cable tv all together. Paying for commercials is old fashioned.
  • Choose one streaming service. Having Netflix, Disney plus, Prime and Hulu is a bit much. A lot of shows are available for free and there are better ways of spending your time than watching tv.
  • Turn off the heating at least an hour before bedtime.
  • Insulate your house. Check for available subsidies.
  • Be frugal with electricity.
  • Buy a sim lock free phone and take on a sim-only subscription. A phone can be used 3-4 years. Count your profit.

That’s it. It is my list. What do you think I missed. Can I save on other things than are on this list? Please let me know!

Till next time,


I am not a Financial advisor nor am I YOUR financial advisor. I am not a trained financial professional. This blog is for entertainment purposes only.

I want it and I want it NOW!

For me a goal in life is financial freedom. To achieve it, I save money and invest it. This way the money can make money and I get more and more financially free every month. One thing that is keeping me from saving is spending on stuff I don’t need, use and love.

Here is a guide I use to stop myself from (over)spending. Maybe you find value in it as well.

Get to know why you want to stop spending on stuff you don’t need.

Get clear on why you want to save money. For me this is a couple of reasons. I already have all the stuff I need to live a good life. More stuff will cause more clutter, needing me to take more time cleaning, organizing, and maintaining the tranquil home that I desire. Second I have savings goals. I want to save money to retire early and I want to be flexible in the amount of hours/days per week that I work. This way I don’t need to work fulltime but can do with a little less to keep me mentally sane and focus on –for example- writing this blog. The flexibility is a really big one for me.

You don’t just not buy something, that takes a lot of self-discipline. You choose between buying something you don’t need or to save up for your big goal. The choice becomes so much easier if you have the end-goal in mind. Visualize your own end goal, make it super specific. It sometimes still is hard to not spend money, but it will get easier over time. Also sometimes this will still fail and you will buy something you don’t need. I do it too. Don’t be mad at yourself. Sometimes the self-discipline is just not strong enough, and that’s okay.

Stop advertisements from entering your home.

We live in an overly advertised world and get bombarded with stuff on sale that we don’t need. There are ways to make the advertisements come to you in a more moderate way. Here in the Netherlands, once or twice per week we get a big bundle of advertisement leaflets actually on paper in the mail. There is a really good way to not get them. Place a ‘nee-nee’ sticker on your mailbox. They prevent all unaddressed mail from coming in. It saves a lot of paper too! Save the trees yay! They are available at your Township.

For addressed advertisements you can unsubscribe at Postfilter in the Netherlands.

They will unsubscribe any post from certain categories that you choose and filter them out for 5 years. Find out how to stop advertisements from entering your home where you live.

How do I get great deals if I run out of toilet paper or toothpaste? Well, first I don’t run out of toilet paper, I have a complete attic full, you know, just in case ;). But when I need something I go look for the discount online. Don’t fall in this checking every week for new stuff on sale. Only check when you run out of something and actually need it again. All the promotions are to be found online these days and this way I will not get all the unsolicited advertising at my door every week.

Be a cord-cutter.

Another great tip to decrease the amount of advertisement is to cut the cable. Just cancel your cable subscription all together. I did it about 4 years ago and haven’t missed it ever since. I pay way, way less for my Netflix account then I would commercials infused cable. Then I share to even further cut the costs and I get unlimited access to entertainment without commercials. Love it!

Then a couple of weeks ago one of the cats broke the tv, and I didn’t have it replaced. Now I watch TV on my laptop. That is a bit extreme, I have to agree 😉

Guilty as charged.

Delete social media.

Ok this is a little extreme, I know. But bear with me here. A big one but way harder for many, delete social media. This is hard for many because it is so engrained in our lives. Cut down drastically will help as well but deleting all together is great. If this feels like too much unfollow a lot of people and companies and you will get bored of your Facebook or Instagram because there is no more news every minute. I unfollowed basically everyone on Facebook and it got boring quickly. So I deleted it all together. Also I don’t have Instagram, Tiktok or whatever the cool kids use these days. I do spend a lot of time (more then I like to admit) on Youtube, which on my phone does have commercials. On the computer I use an ad blocker which is great. Highly recommend.

Unsubscribe everything.

Have you ever bought something from a web shop? Changes are you did. I know I did! All the shops here are closed except for the supermarket and drugstores. What can you do… Anyway, when you order something, they always hook you up with a newsletter. This contains all the stuff they know you like because you bought it before. Below the newsletter there is a tiny sentence that says ‘Unsubscribe from this newsletter’. Do it for all incoming newsletters that want to sell you stuff.

You will get less distracted and a much more spacious inbox as a bonus.

The thing with discount websites.

Comparison sites are great if you want to check if your internet subscription or your electricity bill can go down. Highly recommend. But websites such as (the discount one, not the dating platform) just list everything with an exceptionally low price. This goes for electronic devices, clothes, free stuff to try, cheap toilet paper and what not. Here in the Netherlands but also in about 15 other countries there is an active community on the website. I tried it for about one month and it was great. There are so many good deals there, you can get everything you ever wanted and more for a great deal. The thing is, I bought all this stuff I suddenly needed because it was a good deal. Not because I needed it. It made me greedy, I want it and I want it now. The fear of a product going up in price just made me buy on impulse. I bought more that month than the previous 4 combined… when I realized I deleted the app all together and didn’t visit the website anymore. It is too tempting guys! I am only human!

All these things combined makes I don’t get as much commercials bombarded at me as the average Joe. Because I don’t see them, I’m not as tempted to buy all the things just because they are a great deal.

Do you have more tips on how to stop overspending? I like to hear from you, please share!

Till next time,


I am not a Financial advisor nor am I YOUR financial advisor. I am not a trained financial professional. This blog is for entertainment purposes only.

There is no such thing as good debt.

I have listened to the minimalists podcast since they started it. I was a reader of the blog before even before that.

Among many other wisdoms they always state the following: ‘There is no such thing as good debt.’ They include every debt, from creditcard debt to car loans, student loans and even a mortgage.

Here is my thought on it. I cannot say anything else then I agree, almost… There is hardly ever any excuse to have personal debt, creditcard debt, car loan or any in that category.

Creditcard debt/personal debt.

You cannot spend money you don’t have to buy things. Period. Don’t do creditcard debt or any other form of personal debt. Not for clothes, not for repairs, not for anything. Maybe, just maybe, for a roof over your head or food. But really, buy the cheapest most calorie dense food and move to a place you can afford. Just don’t go into debt.

Now that that’s out of the way let’s talk car loans.

Car loans

Same goes for car loans. Let’s say you have zero money and you find a job you need a car for. Can you go there by public transport until you save enough to buy a car? Can you borrow somebodies car until you can buy yours? Can you carpool until you can buy yours? It is totally okay to drive a (very) old or (very) small car. I do too, my first car was 950 euros when I bought it and I drove it everywhere. It didn’t have air-conditioning and that is hot in summer. Here in the Netherlands we usually only have a couple of hot weeks but I drove the tiny Lupo through Europe in a road trip of almost 5000km/3000miles back in 2019 when traveling was still an option. Temperatures were above 38 degrees Celsius or 100 Fahrenheit almost all the time and we were driving hours an end with the windows down. It was sweaty and sticky, we had a blast, it was awesome!

The yellow beast, 1900 km from home in Tara National park, Serbia on a roadtrip!

And yes I also drove that thing to work and took coworkers with me when we carpooled. It served me well. Sometimes we were 5 adults in that tiny little car. So glad I was not in the back seat.

It broke down and instead of repairing the 21 year old car I sold it to the car dealer and bought a new used car this month. It was time for an upgrade. This one has electric windows and central door locking! What a luxury! Air-conditioning? Nope. This one is just 18 years old and cost me just 1600 euros. It has extremely low mileage and I think/hope if I treat it well this one will serve me for another 3-8 years. Fingers crossed!

I digress. The point here is, if you have absolutely zero money and you need a car right now, you might want to borrow some money but I really plea for buying something (way) under 3000 euro/dollar. This way you can pay it back AS SOON AS POSSIBLE. Not just the required minimum. No, as soon as possible. If you absolutely hate it, upgrade once you earned some more cash. Trust me you will be extra grateful for all the luxuries like electrical windows.

Next up: Student loans

I’m from the Netherlands and studied here. For this I am very VERY privileged. I studied when we all still got study grants. It’s a monthly payment from the government you could pay tuition and books from. The amount also depended on the income level of your parents, so the less fortunate got a change to go to college as well. A lot has changed, not for the good since 2009 when I started college. I don’t know precisely how it works now but most of the study grants have to be paid back and are a student loan now I believe. But, almost all colleges and universities (except for private ones) have the same fees for the first bachelors or masters you get. For a second degree it’s a different thing but let’s keep that out of the equation. I know this is not the same in every country. If the tuition fees different from school to school, search for a school with relatively low tuition fees. Search for a cheap place to live if the school is not close to where you already live with your parents. This includes sharing kitchen with roommates, sharing bathrooms and toilets with roommates and living tiny. Then if you have ANY time left after studying, spend as much as possible working a side job, especially if you would otherwise ‘waste’ that time chilling, watching Netflix or drinking beer.

On the other side, if you work so much you are going to skip college and fails exams because you work so much, it is best to actually get your degree first and work after you get your degree.  

Also think really long and hard if you even want to go to college or university. Maybe you can get really good at something by working and climbing in position. You have approximately four years to get as good as someone who studied for four years. And don’t have to pay tuition fees that time. You also have about four years to start your own business before your friends from college are done studying and start their job/business. This is a very personal choice but take in consideration.

Onto the debt that is called mortgage.

Buying versus renting can be a tough decision. If you are able to make this decision you probably worked your butt off to be able to buy a house. Congrats on you!

Should you buy a house, even if you could? This is a hard one, depends highly on your life and the place you want to live/are living and how flexible you want to be. In the Netherlands on the long run, buying is cheaper then renting, and after 30 years of paying off your mortgage your house is yours and that is something you don’t have to spend each month. In the short run however, it is debatable. In the expensive areas like Amsterdam, Rotterdam, The Hague and all that is within about an hour drive of those cities, renting is super expensive but buying is super expensive too!

No matter where you live, think about how long you want to live there and make the following calculation. (The next is all calculated with made up numbers)

How much rent or mortgage would I pay over this amount of years (let say 5 years in this example).

How much extra costs would I pay in this 5 years.

For rent this is usually not so much, you don’t have down payment on the house, except for a deposit which you receive back if you leave the place in good condition. If something breaks or gets clogged you call the landlord to fix it, etc.

Do account for rental prices to go up.

Example: You pay 1000 per month in rent and rent goes up 5% each year. In five years you paid about 66.300 in rent.

Now if you buy the same house, how much do you need to pay in 5 years.

This is the monthly payment, the down payment (here it’s between 5-8% of the total amount of the house, realtor, taxes, mortgage etc.), constructions, repairs, home improvement etc. This amount adds up quickly, I know from experience.

You pay 1000 per month on it and because you have a fixed rate, after 5 years it’s still 1000.

You pay 60.000 in five years. Down payment is 12.000, constructions are 30.000 (it needed a new bathroom and desperately some double glass or something like that and some painting or wallpapering that will make it look modern and up-to-date. The plumber comes twice, the heating was broken, there was a flood, you name it. You are probably insured for some of it but it will cost you some as well. Let’s say 5000 total.

Total costs: 107.000

Buying costs 40.700 more than renting in this example. Renting is more profitable in the short run, besides you have a lot less work to do on maintaining the property.

How much is your house worth in that amount of years from now (in this example 5 years). And extract if from the total.  Now here is some guessing but make a good estimate. How much did you actually pay off already? Take that off as well. If you have a low interest rate, this might actually be almost half of your monthly payment.

In this example the value of the property has gone up by 30.000 in 5 years. Marked has gone up and also you improved the house, the bathroom and so forth. If you have a low interest rate you may already have paid off a lot on the house, as (only) about 60% is interest in the first few year, 40% of the monthly mortgage is actually going towards paying it off. Here that is 40% of 60.000 = 24.000.

Now extract both from the initial 107.000 you put in it and you have 107.00-30.000-24.000=53.000.

Renting was 66.300 over 5 years and buying 53.000, now you are at the good end of the equating buying. The longer you own the property, the more in your favor the calculations will be.

Make this calculation for your living area, situation, and time you plan on living somewhere. You can imagine living somewhere for just a couple of years, renting is a good option, but if you want to live somewhere for a long period of time, it can be (way) more profitable to buy.

So, I have to disagree with the Minimalists here. A mortgage may not be a ‘ good debt’. It may be a financial good decision and save you money in the long run.

What is your opinion on debt? Let me know in the comments below!

Till next time,


I am not a Financial advisor nor am I YOUR financial advisor. I am not a trained financial professional. This blog is for entertainment purposes only.