You might be thinking that are only seven wonders in the world. Has recently a new wonder been added? The 8th wonder has been there since Einstein’s time. Apparently, it’s not a monument.
You might have heard about compounding in your school days and solved a few problems. But have you ever learned anything about its characteristics? We can grasp a lot of things from compounding.
Compounding takes time. The results are not immediate. The longer we are in the race, the better result we get. It teaches us to be patient with any circumstance whether it is grief :( or joy :). It enlightens us about consistency. If one improves his skill just by one percent every day. One will be 37 times better in the skill by the end of the year. (You can try calculating (1.01) ^365) One can see the fruitful outcomes if one continues year on year. After the next year it is 1427 times. You can see the exponential jump. It guides us to be early adopters. The sooner one starts, the sooner one gains.
Last year, I read a book “The richest man in Babylon”, the author has narrated the principle of compounding beautifully. How can we make money from money? If you want to be filthy rich someday, you need to harness the power of compounding. Most of the millionaires or billionaires we see next door are the byproduct of magnifying. They invest both time and money wisely and are consistent. For instance, the Oracle of Omaha, Warren Buffet, started his investing career at the age of 12. He is considered the most successful investor of our century. It’s not only because he has made so much money but also because he has been consistent in performance of outperforming the market. Beating the market for a year or two may be easy or may be because of sheer luck but beating the market for eight decades is pure hard work. He has famously said “I always knew I was going to be rich, so I was never in a hurry to”.
Hope you harness the power of compounding and be the next millionaire or billionaire.
Happy Sunday :)
Happy Leap Day!!
Disclaimer : The image has been taken from here