You know about compounding right? You understand what pyramiding your result on a weekly basis can do for your seed capital over a short time. You understand that taking just $100 and compounding it at just 8% per week, you can expect to achieve $4371.00 in just 12 months. Taken further, if that was $1000 instead of $100 your end result would be $43,710 and of course if that $1000 was $10,000 you would make nearly half a million in 12 quick months.
Lets say we do start with just $100, first a grand total of $4371 is not very stimulating to work towards for 12 months of waiting.
Second, where are you going to find somebody to give you 8% per week? Mutual Funds would offer you 8% per year (if you are lucky) Banks or government bonds issues offer half that! Co-ops? Las Vegas?
There are no financial institutions who offer more then the overnight cash rate minus a point or two. Currently about 7-10% per annum
We wont be talking to any professionals in the paper products financial world. What enourmous wealth there is there, it stays in the family. Its your funds that are used to oil this machine, and they return you simply a pittence. But, the flip side, is you dont have to lift a finger to earn that pittence. I dont know about you, but I got tired of watching paint dry. I was looking for more practical hands on solutions.
Back to our example, if in the first 12 months, you were able to compound your $100 at a rate of 8% (which is easy, I'll show you how) the following year, just another quick 12 months your end result would be over $180,000, and the year after that, just 36 months after you started you would have a tidy $800,000 very close to One Million Dollars. Just by multiplying your result by 8%
The magic of compounding was never lost on me. As a schoolboy, I calcualted all sorts of leveraged figures on my calculator.
The secret is to make compounding work for you in a concrete way in the real world, and thats what we talk about in 7 days, when "part 2" of this article is released.
If you'd like to know more immediately, discover the link below. I have alot in store for you.
Martin Thomas is a professional investor and CEO of Opportunity-Investor.com A website for individuals seeking the narrow path to rapid wealth. The website outlines a new and effective way to produce astounding results for ordinary people. http://www.opportunity-investor.com focuses on the main literary work by millionaire investor Hayden Muller.
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