The Secret about "INTEREST" that the rich won't tell
PRINCIPLE OF COMPOUND INTEREST(CONT)
We have learned more about interest, how it applies to money, the opinion of a brainy human; Albert A. Einstein on compound interest. The difference between simple and compound interest was explained using the table (in the first part of this post), by using equal amount, interest rate and same duration. The first part of this post was concluded by explaining how this principle can compound mystery on your financial journey to freedom, you will be amazed how much people are in bad debt because they didn’t have the knowledge you are gaining by reading this post. So let’s move a step further in our learning curve by explaining how you can actually make more money by using compound interest.
“My wealth has come from a combination of living in America, some lucky genes and compound interest”
- Warren Buffet
Studying Warren Buffet, I have come to realize that doing investments that has compound interest attached to it can transform your financial status in the space of few years, how few you will like that to be; depends on you and your risk profile (which we shall be discussing someday). He increased his wealth by 7,268% by carefully seeking knowledge about money, as you are doing now, picking right investment portfolios and having the patience to allow his interest compound. You can’t wait till you have amassed impressive amount of wealth before you start playing the money game in life, warren started at the age of 11 but his wealth grew exponentially from age 70 upward because compounding works with enough time and patience. You need to tune yourself to be different from the Millenials, learn patience and stick to the principle of compound interest.
If you invest $1 that compounds at 1% a day, in 5 years the $1 would have grown to $77m but in reality no investment package offers compound interest rate of1% a day, but you can find banks that offer compound interests on accounts and move your long term savings in there, it is not making sense if it is not making money or you can look at investment portfolios that offer juicy interest rate, and structure your plan to reinvest your capital and interest at the end of the stipulated time of investment. You deserve more money, like everyone else but money comes to those who have truly discovered how to make it. you can check our website: https://www.farmfunded.com/farms.php for investment packages that will pay you more in shorter timeframe.
In conclusion, mastering the principle of compound interest helps you to exploit investment opportunities more profitably, make smart choices when dealing with banks and other financial outfits, also helps you to manage your debt profile by understanding the need to service your debts sooner rather than later, all in the journey towards attaining financial security. Stay informed by paying regular visits to this blog to add more knowledge and value to yourself, its the interest on your value that is compounding.