One amazing life lesson every about to be successful person must learn.

Most great fortunes are built slowly. They are based on the principle of compound interest, what Albert Einstein called “The greatest power in the universe.”- Brian Tracy.

Have you ever been fascinated by a compound interest calculator? If you have seen projections from financial analysts, start-up businesses, or even the compensation plan of network marketing companies, you would have seen the fantastic potential of compounding.

Compound interest is scary and exciting, and if young people need to understand anything well, it’s compound interest. Writing and thinking about it is making me want to organize a seminar. I am thinking of a few titles already. “What I wish I fully grasped 20 years ago”, “The Seminar you should never clock 21 without listening to”, or “Listen to this before you earn your first income”. If you are interested in this training, you may want to join the workforce to make it real. Send me a message on the platform you read them from. Let me get back to my train of thought. Compound interest is incredible and amazing – awemazing!

A wise man once said in finance compound interest, “Money makes money, and the money that money makes, makes money.” Compound interest takes something small and makes it huge with only two key factors – consistency and time. With compound interest, anyone willing to be consistent with time can be rich. While being wealthy is relative, what I can say with guarantees that anyone who is committed and consistent can leave an inheritance for their grandchildren.

Before you respond to the thought about what you are compounding, let me give you a few examples to test out the power of compounding.

Example 1 – Finance

An investment of $100 topped up with $30 monthly for the next 25 years at 20% per annum and the $30 monthly increased by 10% every year ($33 year 2, $36.3 year 3, etc.) will give you a value of $341,000 in 25 yrs.

Example 2 – Agriculture

2 Grains of maize in a farm planted to reap a harvest in 12 months (even though its harvested 4 months), with 2 cubs of 150 seeds each per stalk, and the seeds replanted with a 50% seed viability over 5 years will yield 5 Billion Seeds.

Example 3 – Business

A woman making and selling snacks with a capital of $30 and making a profit of 10% daily (while working 5 days a week and only compounding monthly, we discount to 100% monthly). She removes $90 for her bills every quarter. After 1 year (12 months) and simultaneously growing her capacity to sell will result in a capital size of $70,000.

Is it making sense to you? If you are not earning it, you are probably paying for it.

“Compound interest is the eighth wonder of the world. He who understands it, earns it, he who doesn’t, pays it.” – Albert Einstein.

The first projects you need to think about the moment you start earning are

1. Why should I compound?
2. What can I compound?
3. Where can I compound?
4. How can I compound?
5. When can I compound?
6. Who can I compound?

Would you like to take deeper dive into these? Kindly share with friends and family so they can get the next update which will answer these questions. If you compound it wrongly, it will fall like a pack of cards.