Lesson 13

The Eighth Wonder Of The World

With saving, you can be:


There are many benefits to being rich in time:

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Saving for retirement relatively cheap.
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Pay for your kids college easier.
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Take care of your future self very well.
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Rich in Time


Tiffany is a 55-year worker who would like to retire in 10 years. She has $500,000 saved up.

She is relatively rich in assets, but is poor in time.


Monique is a 22-year college graduate with no money.

Although she is poor in assets, she is rich in time.

Upon retirement at age 65, who will have a higher balance? Assume each person contributes $250 per month, earning a 10% average annual return.

TIFFANY:  $1,404,732

MONIQUE: $2,141,948

Monique is almost double Tiffany’s balance!

Being rich in time is very powerful.


Eighth Wonder of World

Being rich in time means you are able to take advantage of compounding interest.

Compounding interest = interest earning interest.

Compounding interest is the eighth wonder of the world

Albert Einstein

Why did he say this?

Compounding interest grows exponentially, not in a straight line (i.e., simple interest).

This is incredibly powerful.

What else grows exponentially?

Cell growth of a baby in the womb.
Covid-19 started with 10 individuals and within a few months touched billions.
12 disciples became millions of Christian

An exponential function is not impressive in the beginning, but becomes very impressive if you just give it a little time.

Use Compounding to Achieve Goals

Being rich in time means you can take full advantage of compounding interest.

Compounding interest is a powerful tool for achieving goals.

It is often the only way for people to achieve big saving goals.


Build reserve for elder years of $1,500,000 in 30 years, earning 10% per year.

  • Save per month without compounding: $3,750
  • Save per month with compounding: $664


Build a $1,000,000 inheritance in 25 years, earning 10% per year.

  • Save per month without compounding: $3,000
  • Save per month with compounding: $754

Roth IRA

When saving over a long period of time, a Roth IRA is a good vehicle to hold your savings.


  • The primary reason: grows tax-free, which will steepen the exponential growth of your account balance.
  • Also: Roth IRAs are taxed now and then not ever again. Traditional IRAs are not taxed until the money is taken out. Students have very low tax rates now, so it is best to get taxed now on contributions at a very low rate, and then not have to worry about getting taxed later at higher rates.

Heavenly Compounding

Because compounding interest is so powerful, should we all focus on growing money, and giving the larger amount at the end?

While compounding interest is powerful, there is actually another process that is 100,000 times more powerful:

“Your Majesty looked, and…while you were watching, a rock was cut out, but not by human hands….It struck the statue and became a huge mountain and filled the whole earth.” Daniel 2:31-35, NIV

Save Today

To take advantage of exponential growth of interest

Give Today

To take advantage of the exponential growth of the Kingdom

How do you choose between saving and giving? We will work through this in Lesson 13.

Eighth Wonder Video

Activity: Take Advantage of Compounding Interest with Roth IRA

Complete Activity on PDF Worksheet

Open Account

Open an account and contribute a small amount into it. Only consider regularly contributing into this type of account if you:

  • Have no consumer debt.
  • Have an emergency fund built up.
  • Have enough cash savings to replace your car, computer, and clothing (in order to avoid future consumer debt).

Remember that any money in a Roth IRA is not meant to be accessed until your elder years. Penalties and extra taxes may apply if you try and take the money out prior to age 59.

Elder years reservoir

Your elder years is a predictable time where you will have lost income that will need to be replaced.

STEPS for Calculating Savings needed for Elder Years Reservoir:

(1) Find expected salary:

(2) Use retirement calculator:


Annual amount to save for elder years reservoir:


Surrender Savings

Look at any savings balance once-a-month and declare to Him that this money is His, for His purposes, and that you do not want to miss out on being a character in the story of God’s Kingdom coming to earth, whether that means keeping the money until later, or surrendering it to His purposes today.


In the next lesson, we will learn how the money that you contribute into a Roth IRA can be invested in a way that is both wise and redemptive.

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