Money Math

Tom has been working for a few years. He is enjoying his financial freedom and recently bought a new car (on payments). He is still clearing his college loans (payments again).

Of course, he is looking forward to buying a house (which will involve monthly payments) in the near future. He is currently paying rent (yep, monthly payments) in a small apartment. His credit card has a medium amount of debt, but he feels he is on top of it (but more monthly payments).

With all this money going out he finds he cannot save.

He enjoys his work and he works long hours.

One day, some superannuation agents arrive at work and want to talk to him about his retirement. They are advising him to increase the payments into his superannuation fund. His mind is distracted with all the pressures of work and he finds it difficult to concentrate on all the financial mumbo jumbo. He is young and retirement seems so far off - why worry about it now? He feels he might get hit by a bus, so why not enjoy life to the full?

Tom says thanks, but no thanks to the superannuation agents.

He regrets that decision for the rest of his life, because later he realises he wants to be financially independent by age 55.

Read on to find out why money maths is probably the most important mathematics application of them all...