Hope you like my previous post on the 3rd rule to multiply your gold.

The Miracle of Compound Interest    

Continuing with this 3rd rule, how do you multiply your gold and financial abundance? You need to reinvest your hard earned money for compounded growth. By using Compound Interest. Really, the key to wealth is compounding.

Albert Einstein called compound interest the eighth wonder of the world. And compound interest works because as time increases, interest increases exponentially. In other words, the interest builds on the interest.

Let’s understand how to calculate Compound Interest

FV = PV ( 1 + i )n

FV – Future Value

PV – Present Value

i – Interest

n – No. of compounding periods

Time and rate of return (ROI) will work magic on an initial investment through compound interest. And you MUST make this as a cornerstone of building your wealth. By compounding  a few dollars a day over time can create your fortune.

Compound interest is the concept of adding interest back to the principal amount so that future interest is earned on ever-increasing amount. Basically, compound interest will work for you, or against you. When you invest, it works for you but when you borrow, it works against you! And therein lies the secret of the term “money makes money.”

And success is just the same. When success builds on success we achieve compound success, or massive success. When you INVEST in yourself, success will come to you but when you continue to procrastinate, you delay your success.

The point is that all of us can take advantage of this compounding effect with our investments and our success. Money makes money. Likewise success breeds success. We need to start as soon as possible and simply allow time to work its wonder. On the other hand if you don’t start investing now and procrastinate and delay your investments, what you are doing is really penalizing yourself.

In my next post, I will share with you the concept of Rule of 72 and how the  Rule of 72 works and how you can use the rule to your advantage.

I hope you have enjoyed this as much as I love to share it.

To your success and financial abundance.

By Michael Tay   www.michaeltay.com

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