Posts Tagged ‘compounding’

“Remember, compounding your capital is simply a way of saying that the growth of your money happens over and over again at regularly-timed intervals….  That’s the whole point of compounding, you earn money on the money you’ve earned….  The only way you can use compounding to your advantage is through time.” -David Eifrig

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“The greatest shortcoming of the human race is our inability to understand the exponential function.” -Albert Bartlett

“The ‘exponential function’ is a mathematical way of explaining compounding….  Remember, compounding your capital is simply a way of saying that the growth of your money happens over and over again at regularly-timed intervals.” -David Eifrig

“…why did Albert Einstein call compounding ‘the eighth wonder of the world’?  It’s because nothing else has the power to create great wealth so surely.” -Mark Ford

“The ‘butterfly effect’ is an idea from science that describes how small events can end up creating huge impacts.”  Compounding is the equivalent of “the ‘butterfly effect’ of spent money.  Compounding is the ultimate way to turn a little money into a lot of money.  It’s one of the great secrets of wealth.” -Brian Hunt

“Compounding is the royal road to riches.  Compounding is the safe road, the sure road, and fortunately, anybody can do it. To compound successfully, you need the following: perseverance,… intelligence,… knowledge,… and time.” -Richard Russell

There are many reasons for creating your own financial system.  The main objective is to reverse the effects of negative compounding and turning it into positive compounding.  Just as debt can work against you, it can work even greater for you once it is under control.