It all begins with a simple calculation.
You are home on a rainy Sunday afternoon, looking at the flashy calculator you found on sale last month for $12 at the local buy n' save. It was a good buy.
You find the percentage button, and try to decipher how it all works.
Before long you are calculating percentages like a pro.
An hour later, you stumbled across an idea everyone with a calculator on a rainy Sunday afternoon stumble across. That of calculating the money you have squirled away at the local bank branch in a fixed term savings account. You recall the rate was guaranteed 7% and even though you are only locked in for 12 months, you decide this money will become your retirement fund. All $3000 of it.
So you start crunching the numbers for ..oh, say 30 years.
In 30 years, you calculate that it will become $22,836.76 Wow! even if you do nothing. Not bad.
A show comes on the television that grabs your attention, and your calculator is absently passed onto the coffee table as you get comfortable, and get set to watch "The most dangerous animals on earth-a ten point count down".
You watch, but the calculator sits patiently within your line of sight. During one of the ad breaks, you get another idea.
What if you could find some other investment vehicle to grow your money? What if you could find somebody that offered more interest?
You don't know where you will find somebody willing to offer you this much interest but you try it anyway....30%
30% at 30 years.
Wow. $3000 turns into $7, 859,983! Wow! you hum to yourself. You begin to pay a lot of attention to your calculator, the TV show is up to number one, the most dangerous animal on the planet is........you don't care. You don't even hear the television.
Suddenly a wise voice enters your head. You know its wise, because it told you. It says hey, 30% is not a huge jump from 7%. Yes it is a lot different, but not proportional to the result. $22,000 odd dollars, compared to nearly 8 million is a big difference.
There's something to this.
You resolve to investigate this. You steady yourself for the figure that will come next, when you try 100% You start crunching.
...after picking yourself up off the floor, you decide to do some research on your favourite resource site Ezine, a search for compounding you find this article.
Surely it can't be that hard to maintain a level of compounding that's fairly interesting over a number of years? You reason.
And you know what? You are right. It's a science. Its simple math and the results are under your control if you want them to be.
Your actions determine your results, why wait 30 years for compounding to work for you?
You can manufacture exceptional results with a some solid research, and deploying that knowledge.
There's a lot more to Compounding than the math. But look, they say in life, you get what you put in, however, compounding is different. When compounding your own money, as we have seen, that theory is just inadequate to express the returns.
Its time you investigated compounding properly. Keep an eye out for my articles here, or visit our web site right now on the link below for a lot of free insights and open content pages.
(c) Martin Thomas 2005.
Martin is an investor who is also part of a team that maintain a website for ordinary people to find rapid resource pathways to wealth. http://www.opportunity-investor.com. With quality content heavily slanted towards good common sense, opportunity-investor.com is the exclusive place on the web to get the highly acclaimed work by Millionaire Investor Hayden Muller. "The Trade Secrets of an Ethical Opportunity Investor: A Step-by-Step Guide". Copyright 2005 revised edition. Hayden Muller.
Culver prom limo ..Financial planning at an early age may seem complicated, however... Read More
This new way is catching on around the world. People... Read More
Have you wondered why financial experts only tell you certain... Read More
1. Save up to 50% per month on convenience cleaner... Read More
No one has complete control over their thoughts. But with... Read More
You have probably heard other people say that "Money isn't... Read More
Almost all of us go to work everyday and do... Read More
Turn to the year 1999, a couple of friends sitting... Read More
What if I told you that reading a book would... Read More
You can't build a house from the roof down, and... Read More
There are many wealth creation strategies and investment techniques available... Read More
Financial freedom is the power to do what you will... Read More
I am often amused by the ads and offers I... Read More
Although there are advantages to selling other people`s products and... Read More
1) Pay off your loan, credit and store card debt... Read More
OK, this article will start with the cheapest piece of... Read More
When Ben Franklin said "a penny saved is a penny... Read More
This retirement account is so new and unique that you... Read More
Have you stopped to realize that although you go... Read More
Yesterday we learned that 74% of all wealth is created... Read More
Are you setting the right money goals?Most people believe having... Read More
"If you know how to spend less than you get,... Read More
To budget, to have a budget and to be on... Read More
Endowments and endowment mortgages have received a lot of bad... Read More
There are few things in life that are more stressful... Read More
Wood Dale limo ..There is no questioning that the amount of unclaimed money... Read More
Very few people whom I know are familiar with the... Read More
No matter what markets you serve; what products you sell;... Read More
Giving and ReceivingIt seems that people generally find it easy... Read More
As someone who loves to shop, enjoys holidays and owns... Read More
Articles on 'How to make money' come a dime-a-dozen. How... Read More
No matter how tight things are financially for you; no... Read More
I want to share an experience I had in common... Read More
Do you have financial problems? Then a budget is the... Read More
Money is probably the most challenging thing for many people... Read More
Financial planning is an ongoing process individuals and businesses should... Read More
You can't build a house from the roof down, and... Read More
Bottom line. No exaggeration. No hype. If you want to... Read More
In my last article on Creating Residual Income I mentioned... Read More
No one has complete control over their thoughts. But with... Read More
"Join our program and retire in 3 months..." yeah, right.We... Read More
There are few things in life that are more stressful... Read More
Part of learning to become financially free is to begin... Read More
Although there are advantages to selling other people`s products and... Read More
No matter what income level you are currently at, generating... Read More
Paper burns and large companies can go bankrupt, but if... Read More
According to Wallace Wattles, in his popular wealth treatise called... Read More
A residual income is one that comes in no matter... Read More
When I look around at all of my friends, and... Read More
There are only 2 ways to grow your wealth -... Read More
Wealth Building |