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According to Albert Einstein, compound interest is the most powerful force in the universe. How can argue with the smartest man in the universe? Can it get any better than your money earning more money while you sleep? Actually the money you earn on your money earning money too would be better! That's exactly what compound interest is. Compound interest is the proverbial snowball rolling down the mountain. It may start out slow and small but it grows big and fast. And it feeds on itself, growing bigger and faster over time. Let me ask you this: Given the choice of $100 dollars per hour job or one month where you start with a penny and it doubles every day until the end of the month, which would you choose? Most people choose the $100 per hour job without giving it a second thought. Working 8 hours per day, you'd gross $800 dollars per day and $4,000 per week. During a normal month, you'd earn a whopping $16,000. That's a lot of dough, clearly better than doubling a measly penny for a month. Or is it? Here's the simple math (see the table at http://www.Top10MoneySecrets.com). Beginning with one cent and doubling it daily for one week, you'll have $1.27. Continue doubling your accumulated earning every day for one more week. Your cumulative total at the end of week 2 is $163.83. At the end of the third week, you've accumulated some serious cash - $20,971.51. And at the end of the last week, you've amassed a fortune of nearly $2.7 million. Since a month is usually 30 days, let's keep doubling it for another 2 days. Ultimately, you have over $10.7 million in only one month and you started with one small penny. How does that $100/hour job look now? Geez, you'd still only make a fraction of $10.7 million if you made $1,000 an hour. And that's busting your butt Monday through Friday for 8 hours. You didn't even have to work to amass your $l0.7 million fortune. You may not have been working but your money was working for you. So what have we learned here: 1. Allowing your money to work for you beats the pants off you working for your money. 2. Start early and watch your investment grow. The earlier you start the better. Most of the $10.7 million was accumulated in the last few days. Each dollar you earn can be thought of as a seed. You can either plant it and let it grow or waste it frivolously in impulse shopping. It's your choice. What will you choose? Too many people don't think about retirement until it's too late. Don't be one of them. 3. Don't spend your retirement earnings...period. Don't give in to short-term impulse urges to buy things your don't really need. Let compound interest work its magic! For example, if you had withdrawn $10,000 on day 21 to buy a new toy, your total at the end of 30 days would drop to $507,418.23. Certainly $500,000 is a significant chunk of change, but that new car cost you much more than $10,000. It actually cost you $10.2 million dollars considering what you'd have earned had you only let it grow. So there is truth to the old adage that patience is a virtue. Now to be fair, you'll be hard pressed to find an investment that'll earn 100% every day for 30 days as this one does. Still, you should recognize the common sense lessons provided by this scenario. Wealthy people clearly understand these lessons, poor people clearly do not. It's really your choice whether your want to be wealthy or not. Do you want to be wealthy?
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