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"Compound interest is the eighth wonder of the world. He who understands it, earns it."
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Compound interest helps you earn interest on the money that you originally invested.
And the key is that you're earning interest on your interest.
Here's an example...
If I offered you:
1: One million dollars right now...
Or:
2: One penny right now and I'd double it every day for 30 days...
Which option would you choose?
Most people would go with option 1.
But if you went with option 2, you'd get over five million dollars.
Check it out:
50+ FREE RESOURCES about money, investing & Personal Finance for you (its FREE)
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As you can see...
If you start with a penny, and double it every day for 30 days...
You will end up with $5,368,709.12.
THIS is the power of compound interest.
It's a great example of how small amounts of money can grow into large sums over time.
The key?
The earlier you start investing...
And let compound interest do its magic...
The more powerful the effect becomes.
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Now you know how powerful compound interest is.
But how can you "earn it" as Einstein said?
By investing money into appreciating assets.
Here are 7 assets that can earn you compound interest:
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90% of all millionaires become so through owning real estate.
Real estate can provide:
Remember, real estate is illiquid and a long-term investment.
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The average ROI for fine art is 10.6% per year.
Fine art investments can provide:
Remember, fine art can be expensive and a long-term investment.
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The main source of wealth creation is...
Investing in stocks.
Stocks can provide:
Investing in stocks is a proven way to earn compound interest.
Remember: Stock markets fluctuate and past performance doesn't guarantee future results.
Start with index funds if you're new to investing.
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There are over 88,200 crypto millionaires worldwide.
Crypto can provide:
Important: Crypto is highly volatile.
Never invest more than you can afford to lose.
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Farmland has averaged ~11% total annual returns from 1992 to 2023.
Farmland can provide:
Remember, farmland is illiquid and a long-term investment.
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You can't go wrong with investing in yourself.
The return youāll get will be 10X the amount of money that you invested.
How do you invest in yourself?
The more you learn, the more you earn.
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Compound interest is the way to wealth.
If you want to become a millionaire...
Start investing early and often.
And let compound interest work its magic.
Your bank account will thank you later.
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IDEAS CURATED BY
CURATOR'S NOTE
If you want to become a millionaire... You need to understand compound interest.
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