Albert Einstein, arguably one of the most intelligent people who ever lived, was asked what he thought was the greatest of mankind’s discoveries. His answer: “compound interest.” He went so far as to call it the eighth wonder of the world.
As an example of just how powerful this can be, consider the following scenario.
Let’s say Christopher Columbus made an investment in the new world’s future in 1492. If Chris had placed a single penny in a 6% interest-bearing account and instructed someone to remove the interest every year, the value of the interest earned to date (2005) would be almost 31 cents. Not too much to write home about, is it.
But if the young explorer had placed the same paltry investment of one cent into the same interest-bearing account but LEFT the earned interest to compound—earning interest upon the interest—the results would be drastically different.
What would you guess the account would be worth now? $10,000? $100,000? A million? 10 million? 100 million?
In actuality, the resulting balance of a penny invested at 6% COMPOUND interest for 513 years would be $95,919,936,112. That’s 95 BILLION!
Not bad for a single penny. Do you see what Al Einstein was so worked up about? It’s powerful.
We may not have over 500 years to make compound interest work for us, but we can employ it nonetheless.
It doesn’t matter how old or young you are, you have to start now. Get the power and the momentum of compound interest working for you.
Action Point
Pay yourself first. Save a part of EVERYTHING you earn and invest it. You can save 10% of what you earn. And if you start young, you’re GUARANTEED to be a millionaire by the time you retire. Pay the person who will make you rich—YOU!
Get out of debt (unpaid debt is like compound interest in reverse), invest in yourself, and reap the power of the Eighth Wonder of the World.
Recommended Resource – Free Report
12 Steps to Becoming Debt Free
Not only can you pay off all your debts, but you can do it in a much shorter time than you could ever imagine—including your home mortgage. Your mental, emotional and financial health is worth it. If you’re serious about living debt free, this report will put you on your way to never owing anything to anyone.
