Albert Einstein was absolutely right when he said that ‘Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it
In our investment strategy we often tell clients to go long on their investment, many cash out of their investment whenever they see a good profit or dip into the investment whenever they have a need. The magic of compounding doesnt happen overnight. There is magic to compounding and once you have experienced it you will understand how to increase your net worth and become wealthy
The basic thing to understand here is that you are not only earning interest on your principal amount but also the interest accumulated, the longer you stay invested the better it works. after a period of time the amount just becomes astronomical! It takes a lot of discipline and common sense and is certainly achievable if you put your mind towards it.
We will not bore you with compound interest formula, it would be a lot of numbers and calculations. Life is easier when things are simple there are compounding calculators available which helps us to calculate the returns. Check the same in our Higherhighs Wealthmaker website or you can get in touch with us to share a file on the same
The bottom line is that for compounding to work you need to ensure that you are covered well in your other areas of finance and are not in debt or have manageable debt which is never 30% more than you income
We would love to help you compound your wealth, get in touch with us to know more.