Compounding is a mathematical phenomenon where when you invest your money, that money earns returns, and that return also earns a return. This accelerates the growth of your investment. However, to get the benefit of compounding, staying invested is the most important part. The words compounding interest are two of the most powerful tool ever for your finances; you don’t see results overnight - but it lets you sleep well at night.
Let me give you an interesting example: if I were to offer you the choice between an immediate cash payment of one million dollars or a magic penny that doubled every day for 30 days, which one would you take?
If you are like most people, you might jump on the million-dollar deal at first. But if you break out your calculator and double one penny for 30 days, you will be amazed that on day 30, your penny would be worth over $5,000,000.
Exponential growth is like a supernatural force, and it can do more for your money than you'll ever be able to on your own...
That’s the power of compounding interest. Nothing can stop it from growing. As long as an investment is paying you interest - you know that time is your ally. The longer time goes, the richer you get!
Because as time goes on, you will keep collecting interest. As time goes on, you can reinvest that interest and get more interest. The real route to riches is to set aside a portion of your money and invest it so that it compounds over many years. That’s how you will become wealthy while you sleep. That’s how you will make money your slave instead of being a slave to money.
Every day you wait is a waste of a day; you’ll never be younger than you are today – so today is the best day to make a decision.
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