ONE OF THE WONDERS OF THE WORLD
One of the most powerful concepts of wealth creation, is leveraging the power of compounding interest!
It was Albert Einstein that said… “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
When you begin to grasp this idea, you will soon realise that this is one of the modern wonders of the world!
I was recently listening to an audio from Tony Robbins, and he used a game of golf as an example.
Now just say you were playing a game of golf and you decided to bet 10 cents a hole.
Then every hole after, you decide to double that bet!
Below I will show you how this works.
- Hole 1… 10 cents
- Hole 2… 20 cents
- Hole 3… 40 cents
- Hole 4… 80 cents
You get the idea!! But is this really going to add up to much?
Lets’s jump to hole 9.
9. Hole 9… $25.60
10. Hole 10 $51.20
Okay, it is starting to add up, but how much could it be? A couple a hundred??
11. Hole 11… $102.20
12. Hole 12… $204.80
Now let’s jump ahead to hole 15!
15. Hole 15… $1,638.40
16. Hole 16… $3,276.80
18. Hole 18… $13,107.20!!! And we started at 10 cents a hole!!!
USE THIS WITH YOUR INVESTING
As you can see, using the power of compound interest is truly an amazing concept!
It starts off slowly, and then it gets to a point when it just explodes off the chart!!
So the key to this idea is to start saving TODAY!
Start early and do it often!
PAY YOURSELF FIRST
To allow the Power of compounding interest to work it’s magic, you must use the number one fundamental rule of investing, and live by the motto of spending less than you earn, and investing the difference!
The key to success with this is to always PAY YOUR SELF FIRST!!
Open up a separate online savings account, and every month or fortnight or whenever you get paid, transfer 10% of your pay into this account.
This account will be your FFA account or your Financial Freedom Account.
This money will be used for investing only.
Investing in things such as Shares, Real estate, Business’s, traditional or online, and to create passive income streams!
In this account the principle amount you put in will NEVER be spent!
It is the goose that will lay the golden eggs that will lead you to Financial Freedom!!
Don’t worry if you can’t put 10% of your wage into this account at first, just pay yourself first and make it a habit!
Then build up to your ideal percentage!
So in summary, start putting the power of compounding interest to work for you, open up your FFA account and PAY YOURSELF FIRST!
Start slow, and in time this powerful concept will begin to work it’s magic, and you will be on your OWN road to financial freedom!
If you have any questions or comments feel free to leave them below.
To your success,
John W. Newman
Dream It… Believe It… Then Achieve It!
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