Why to learn Compounding Interest-8th Wonder of the World

Albert Einstein famously said that Compound Interest is the most powerful force in the universe. He said, “Compound Interest is the 8th wonder of the world. He who understands it, earns it; he who doesn’t, pays it.The words Compounding Interest are just none less than a miracle in the marketing world.Compounding interest separates the haves from the have nots. Compounding is the first step towards long-term wealth creation.But why is it often said that Compounding Interest a greater teacher of patience? Well for one, you don’t see results overnight. In fact, Compounding Interest is actually pretty boring, it can be like watching a mute movie without the subtitles.What according to you is time?Time is truly a wonderful thing, and it’s something we all share in common but always end up using it differently . Compounding Interest works its magic because of this. It is a universal truth.But there in fact lies a complete difference between Simple Interest and Compounding Interest.

Compounding Interest is the great equalizer
Compounding interest doesn’t care if you are tall,white,dark,woman,man,etc it affects everyone the same because it works on time or you can say it depends on time.If you go on ask a person certainly aged around 25 what’s the most precious thing according to you in life,Time or Money .Chances are heavy that they will choose time. Time is really a wonder and Compounding Interest depends on time.According to the Stanford Publications there lies a Time vs Money Effect.

Compounding interest teaches you patience
Compounding interest at its core is best served when one decides to go for the conservative investing. Someone who beforehand decides to chase speculative and very trendy stocks won’t see the power of compounding interest at all. How can you when your capital moves up and down wildly, one day up and another day down?An investor whose prime interest is Compounding Interest will surely look for the company that is growing steadily and surely.

Compounding interest lets you sleep good at night
Take this quote from the Oracle from Omaha himself, Warren Buffet: “I always knew I was going to be rich, so I was never in a hurry to”.What do you think these great investors and big business men are always up to?They are always smiling because they are making money every second of the day.That’s the power of compounding interest. Nothing can stop you from becoming big as long as your investment is paying you interest .You can sleep good at night because you know time is your bestie.The longer the time goes the richer you get!

Compounding interest can save our kids’ generation

Let’s face it. Our generation isn’t very good at giving a step up to the future generations.It’s always been this way.How big a mess has our parents created for us.We met people who are destroyers instead of creators. This isn’t the world I want my children to grow up in.What if we lived in a world where everyone is debt free.What if we all decide to kick our debt habits, and build something worthy for our future generations.If $8,000 a year can turn into $3.4 million in 42 years, imagine what it would do in 65.It would be beyond our imaginations , which is of course outlandish.What if we did this for our kids, and they did it for theirs? The wealth would simply compound.So let’s start today so that world can follow us tomorrow.