Create Wealth Using Compounding

SECRET FORMULA TO WEALTH ANYONE CAN DO

Lets say you were offered a job and your employer offered you two ways to be paid:

Option A) He will pay you $1,000 per day
or
Option B) He will pay you .01 cent the first day and double it every day for the next thirty days.

Most people will choose Option A and will have earned $30,000 within the 30 day time frame. However, Option B pays a LOT more.

Take a look at this chart:
Day 1: .01
Day 2: .02
Day 3: .04
Day 4: .08
Day 5: .16
Day 6: .32
Day 7: .64
Day 8: 1.28
Day 9: 2.56
Day 10: 5.12
Day 11: 10.24
Day 12: 20.48
Day 13: 40.96
Day 14: 81.92
Day 15: 163.84
Day 16: 327.68
Day 17: 655.36
Day 18: 1,310.72
Day 19: 2,621.44
Day 20: 5,242.88
Day 21: 10,485.76
Day 22: 20,971.52
Day 23: 41,943.04
Day 24: 83,886.08
Day 25: 167,772.16
Day 26: 335,544.32
Day 27: 671,088.64
Day 28: 1,342,177.20
Day 29: 2,684,354.40
Day 30: 5,368,708.80

As you can see, in Option 2, eventhough you only start with one United States penny, within 30 days you would be earning over $5 million dollars a day compared to $30,000 total with option A.

This is called COMPOUNDING and it is a secret formula to wealth anyone can do.

To achieve these results all you would have to do is get a 100% return on your money, per day. Now that would be highly unattainable, and if you know how to do that, let me know.

We could make it more realistic by changing days to years. You could take 1 penny and make $1 million per year within 28 years. Now that seems like a long time but most people in the world work 28 years and never make a million dollars.

Let's mess with the numbers again. Let's say we had $1,000 USD to start with instead of 1 penny. That alone would knock off 17 years. If we start with $1,000 USD we could turn it into $1 million within 11 years! Start with $10,000 you could do it within 7 years.

One more mess with the numbers. Instead of every year what about every 6 months, we could make our million within 4 years or so.

Now all of this supposes we could get a 100% return on our money.You could run the numbers using 50% return or whatever number you like. But compounding your money provides for fantastic returns and wealth.

If you had $1,000 what could you do to earn a 100% return? What about buy a car, put $1,000 down and turn around and sell it for $2,000. Couldn't you take one year to find such a bargain and then buy and sell it?

Next year, take your $2,000 and find another car and buy and sell for $4,000. Now when you get up to the bigger money. Switch over to real estate. Buy a house with $5,000 down. Sell the house within a year and if you make a $5,000 profit.. thats a 100% return.

When you get up to $100,000 you could switch over to commercial real estate. Let's say you buy a property for $1 million and put 10% down ($100,000), sell the property within one year for 1.1 million and your $100,000 profit just made a 100% return.

This money you should never touch. Keep reinvesting it and with compounding you could take $10,000 and make $1 million in seven years. (that means you only have to do 7 deals in your lifetime).

After that you could retire and put your money into a safe investment that returns 10% per year and you would have a $100,000 per year incometo live on. Forever. When you die, your children would have the$100,000 per year income for their lives (as long as no one spends the money).

I hope this opens your eyes to possibilities.